Apax Partners has agreed to buy a majority of AssuredPartners Inc. GTCR is the seller. Assured’s management will have a “significant” equity position, a statement said. Financial terms weren’t announced. BofA Merrill Lynch, RBC Capital Markets and Morgan Stanley Senior Funding Inc. are providing debt funding. Lake Mary, Florida-based AssuredPartners is an independent insurance brokerage.
Lake Mary, Florida, New York, NY and Chicago, IL, July 20, 2015 — AssuredPartners Inc. (“Assured” or the “Company”), one of the largest independent insurance brokerage firms in the United States and a portfolio company of GTCR, announced today that it has entered into an agreement to be acquired by funds advised by Apax Partners (“Apax”), a global private equity firm.
Under the terms of the agreement, funds advised by Apax will hold a majority interest in the Company, while members of Assured’s senior management will continue to have a significant equity position. The financial terms of the transaction are not being disclosed.
Founded in 2011, Assured is the 6th largest independent P&C insurance brokerage in the nation with offices in over 30 states, the District of Columbia and London. The Company has completed 101 acquisitions since 2011 and is one of the fastest growing insurance brokers in North America. Through Assured’s network of agencies, the Company provides property and casualty and employee benefits insurance brokerage services to commercial enterprises and individuals.
Upon completion of the transaction, the co-founders of Assured – CEO and Chairman Jim Henderson, President and Chief Operating Officer Tom Riley – will continue to lead the Company along with the current management team, from its Lake Mary, Florida headquarters.
Assured CEO and Chairman Jim Henderson commented, “We look forward to our partnership with the Apax team as we pursue the next chapter in our vision to build one of the leading middle market retail insurance brokerage firms in the nation by partnering with successful regional and local agencies.”
“We have been following Assured closely since its inception and have been impressed with the strategy and vision articulated by the management team,” said Mitch Truwit, Co-CEO of Apax. “We are excited to back the company as it pursues its next phase of growth.”
Ashish Karandikar, Partner at Apax, added, “Over the past four years, Assured has emerged as a partner of choice for highly successful local and regional agencies. In today’s complex environment, with challenges ranging from rapidly changing healthcare regulation to cybercrime, customers need the advice of a trusted insurance broker more than ever. We are delighted to support the Assured team as it provides customers with such solutions and builds a preeminent insurance brokerage franchise in North America.”
“GTCR is proud to have supported the Assured management team since the formation of the business. The successful partnership with Jim and Tom and the entire team is a testament to their ability to build a leading national broker,” added GTCR Managing Director Aaron Cohen. “Their M&A acumen and operational excellence have driven an impressive record of success.”
The transaction, which is subject to customary regulatory clearances, is expected to close in the third quarter of 2015. New debt financing has been committed by BofA Merrill Lynch, RBC Capital Markets and Morgan Stanley Senior Funding, Inc.
Simpson Thacher & Bartlett LLP served as legal counsel to Apax. BofA Merrill Lynch served as lead financial advisor to Assured and GTCR with Barclays and Morgan Stanley & Co. LLC also serving as financial advisor. Kirkland & Ellis LLP provided legal counsel to Assured and GTCR.
About Apax Partners
Apax Partners is one of the world’s leading private equity investment groups. It operates globally and has more than 30 years of investing experience. Apax Partners has advised funds that total over $40 billion around the world in aggregate. Funds advised by Apax invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long-term equity financing to build and strengthen world-class companies.
Apax has a successful track record of investing in the Services sector. In addition to AssuredPartners, notable current and past financial services investments include Hub International Limited, a leading global insurance brokerage; GardaWorld, a global provider of business solutions and security services; Psagot, the largest asset management business in Israel; Azimut, Italy’s leading independent asset manager; Banca Farmafactoring, an Italian bank with operations in Italy, Spain and Portugal; Shriram City Union Finance, a leading SME and retail financial services provider in India; Chola, a leading provider of commercial vehicle financing and home equity loans in India; Travelex, the world’s leading foreign exchange specialist; and, Bankrate, a leading publisher, aggregator, and distributor of personal finance content on the Internet. For further information about Apax, please visit www.apax.com.
About AssuredPartners Inc.
Founded in 2011 and headquartered near Orlando, FL, AssuredPartners is the 6th largest independent P&C insurance brokerage in the nation with offices in over 30 states, the District of Columbia and London. Through Assured’s network of agencies, the Company provides property and casualty and employee benefits insurance brokerage services to commercial customers and individuals. For more information, please visitwww.assuredptr.com.
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare, Technology, Media & Telecommunications and Growth Business Services industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $10 billion in over 200 companies. For more information, please visit www.gtcr.com.