New Mountain Capital has agreed to sell its stake in Charlotte, North Carolina-based AmWINS Group Inc, a specialty insurance brokerage. After the closing of this exit, Dragoneer Investment Group will own a 35 percent stake in AmWINS, the Public Sector Pension Investment Board will own 30 percent and over 440 AmWINS employees will own the remainder. The transaction puts AmWINS at a valuation of about $2.6 billion.
CHARLOTTE, N.C.–(BUSINESS WIRE)–AmWINS Group, Inc. (“AmWINS”), announced today that its shareholders have reached a definitive agreement to partner with Dragoneer Investment Group (“Dragoneer”). In this transaction, which values AmWINS at approximately $2.6 billion, New Mountain Capital (“New Mountain”) will successfully exit its investment in AmWINS, which it made in 2012. Upon completion, Dragoneer will own 35% of AmWINS, the Public Sector Pension Investment Board (“PSP Investments”) will own 30% and more than 440 AmWINS employee shareholders will own the remaining 35%. Other terms of the transaction were not disclosed.
Headquartered in Charlotte, N.C., AmWINS is a leading specialty insurance broker placing in excess of $13 billion in premiums through its relationships with more than 20,000 retail brokerage firms and over 1,000 insurance markets. AmWINS’ expertise covers a wide range of specialty insurance products and services in the property/casualty and group benefits insurance marketplace. With over 3,900 employees in more than 100 offices located across 12 countries, AmWINS’ deep industry knowledge and capabilities, extensive geographic reach, and independent relationships with insurance carriers and retail insurance brokers allow it to serve as a critical, independent intermediary in the complex and highly fragmented specialty insurance market.
“With this transaction, we have achieved yet another phase in building a long-term capital base,” said M. Steven DeCarlo, CEO of AmWINS. “Dragoneer’s investment philosophy, deep expertise in the technology industry, and global investment experience, combined with our employee ownership, positions us to be able to focus on our clients and enhances our ability to execute on our 150-year strategic vision. We also want to thank New Mountain for being a great partner over the past four years.”
“We are delighted to meaningfully increase our stake in AmWINS following our initial investment in 2015,” said Marc Stad, Founder and Managing Partner of Dragoneer. “I have personally followed AmWINS’ success for over 10 years and firmly believe there is tremendous opportunity ahead as technology plays a bigger role in the business and the company expands its independent distribution platform. AmWINS’ exceptional management team and competitive differentiation in the insurance industry align well with our investment philosophy. We look forward to forging a long-term partnership.”
The transaction completes the successful partnership between AmWINS and New Mountain. “We are very pleased with our investment in AmWINS,” said Robert Mulcare, Director at New Mountain Capital. “We are fortunate to have had the opportunity to partner with such a unique company, its outstanding management team, and its talented and dedicated employees. During the past four years the value of the company has more than doubled, and we believe the company will continue its tremendous growth and success into the future. We would like to thank the AmWINS team for their partnership.”
“We welcome Dragoneer’s increased investment in AmWINS. Dragoneer shares our vision of providing long-term ownership to AmWINS and we look forward to collaborating with them and AmWINS’ management and employees to support the company’s continued success,” said Guthrie Stewart, Senior Vice President, Global Head of Private Investments at PSP Investments.
Subject to customary regulatory approvals and closing conditions, the transaction is expected to close within the next two months. Robinson, Bradshaw & Hinson served as legal adviser to AmWINS.
About AmWINS Group, Inc.
Headquartered in Charlotte, North Carolina, AmWINS is a leader in the specialty insurance brokerage industry with offices in more than 100 locations across 12 countries, including 80 in the United States. The firm has expertise across a diversified mix of property, casualty, group benefits and specialty insurance products. AmWINS also offers value-added services to support its products, including product development, underwriting, premium/claims administration and actuarial services. For more information, please visit www.amwins.com.
About Dragoneer Investment Group
Dragoneer Investment Group, based in San Francisco, CA, is a growth-oriented investor in both public and private companies. Dragoneer seeks businesses with sustainable competitive advantages, attractive financial models, and world class management teams. Dragoneer’s global track record includes investments across several industries with a particular focus on technology enabled businesses. Dragoneer employs a long-term fund structure supported by the highest quality limited partners largely consisting of leading endowments, foundations and institutional family offices. For more information, please contact Kingsley Beer at email@example.com.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with $116.8 billion of net assets under management as of March 31, 2016. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of the federal Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montreal and offices in New York and London. For more information, visit www.investpsp.com or follow Twitter @InvestPSP.
About New Mountain Capital
New Mountain Capital is a New York-based private equity firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with over $15 billion in aggregate capital commitments. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com.