Carlyle-backed JenCap buys M.J. Kelly Company

JenCap Holdings LLC, which is backed by The Carlyle Group, has acquired Springfield, Missouri-based M.J. Kelly Company, an insurance brokerage. No financial terms were disclosed. PhiloSmith & Company provided financial advice to MJK on the transaction.


September 19, 2016

JenCap Holdings LLC announced today that it has completed the acquisition of privately-held M. J. Kelly Company (MJK), a managing general agency and wholesale insurance brokerage based in Springfield, Missouri with offices in nine states throughout the Midwest and Southeast. Since 1986, MJK has been owned and operated by Jim Adams who was joined by his sons Jon and Paul in 1987 and 1989, respectively. Today the agency places business with more than 200 admitted and non-admitted markets through more than 5,000 independent agents in 26 states.

JenCap Holdings (JCH) was formed by The Carlyle Group (Nasdaq: CG) and JCH management in March 2016 to consolidate specialty insurance distribution businesses, including managing general agents, program managers and transactional wholesale brokers. The acquisition of MJK is the third transaction by JCH since March and places the company among the largest wholesale brokers in the U.S.

“MJ Kelly is one of the most respected managing general agents in the Midwest and Southeast and will be an important part of the growth of JenCap,” commented John F. Jennings, President and Chief Executive Officer of JCH. “We are very pleased that Jim, Paul and Jon Adams acknowledged our commitment to clients, employees and carriers and chose JenCap as the best partner to perpetuate MJK’s success.” In conjunction with the transaction, Jon Adams will move into the position of President of MJK and Paul will take on the responsibility of Branch Manager of the Springfield office. Jim Adams will remain in an advisory capacity.

“MJ Kelly is excited about merging with an entrepreneurial organization like JenCap. This gives us the expertise and capital to take advantage of opportunities we see to expand the MJ Kelly footprint in the Midwest and South and expand our product offerings to our clients” commented Jon Adams.
John Redett, co-head of Carlyle’s Global Financial Services team, commented, “We believe the acquisition of a firm such as MJK represents a major step in JenCap’s overall evolution and success and we are excited to welcome MJK’s management and employees to the team. Furthermore, in support of JenCap’s commitment to its clients, employees and carriers, we remain highly supportive of the JCH management team as they continue to expand its distribution network, product offering and geographical footprint through organic growth and a disciplined yet aggressive acquisition strategy.”

PhiloSmith & Company provided financial advice to M. J. Kelly Company.

About JenCap Holdings Inc.
JenCap Holdings is a consolidator of specialty insurance distribution and program management businesses, including managing general agencies, specialty program underwriters, transactional wholesale brokers and captive managers. JenCap Holdings has assembled a management team with the sector insight and experience to drive organic growth and strategic acquisitions leveraging technology and advanced data analytics. JenCap Holdings is headquartered in New York.