HGGC, AIMCo make new investment in Davies

Both firms are existing investors in the company

HGGC and Alberta Investment Management Corp made a new equity investment in professional services and tech company Davies. Both firms are existing investors in the company. The deal is expected to close in the first quarter.

Press Release

HGGC, a leading middle-market private equity firm, and Alberta Investment Management Corporation (AIMCo), today announced that they have together made a new equity investment in professional services and technology company Davies (“the Company”), in which both firms were previously invested. The new capital will fuel Davies’ continued rapid growth and global expansion.

With the investment, London-based Davies expanded its diverse offerings into insurance legal services through the acquisition of Keoghs, an insurance-focused top-50 UK law firm providing dispute resolution and risk services for the UK insurance industry across motor, casualty, complex and specialty classes. Keoghs will form a new legal services branch within Davies, giving insurance customers a full-spectrum solution. The transaction is expected to close in Q1 2020 and is subject to customary regulatory approvals.

“The magic in Davies is its ability to bring together great teams to collectively address complex challenges with a one-stop, frictionless solution,” said HGGC CEO Rich Lawson.

John Block, HGGC Partner, added, “We’ve been thrilled with the firm’s meteoric growth to date and look forward to continuing that momentum as Davies expands globally, today with the added support of a legal arm, and with further equity capital support in 2020.”

In 2019 alone, Davies grew revenues 49%—including double-digit organic growth—and launched new claims and insurance operations in the US.

“We’re excited to invest further in Davies as it revolutionizes a complex, highly regulated industry,” said James Ridout, Director in the AIMCo private equity group. “The team continues to identify great additions that bring a similarly disruptive, technology enabled mindsight across the insurance services world.”

Since 2015, Davies has increased its annual investments in innovation and digital transformation more than four-fold. Prior investments by both HGGC, which initially invested a majority stake in January 2017, and AIMCo, which acquired a minority stake early last year, have allowed the UK-based firm to reach a global scale.

The acquisition of Keoghs will add 1,700 new colleagues, taking the collective headcount to 3,700, and bring total clients served to over 500. Keoghs Chief Executive, John Whittle, will continue to lead the business and will join Davies’ Executive Committee, reporting to Davies Chief Executive Dan Saulter.

“We’re excited to partner with a company that matches our commitment to quality and focus on growth,” said Davies Chief Executive Dan Saulter. “Keoghs is the perfect addition as we build out our best-in-class suite of offerings.”