Oak Hill Capital has agreed to acquire The Carlyle Group‘s stake in EPIC Insurance Brokers & Consultants, a retail property, casualty insurance brokerage and employee benefits consultant. No financial terms were disclosed. The deal is expected to close in the third quarter of this year. Bank of America Merrill Lynch served as lead financial adviser to EPIC with SunTrust Robinson Humphrey also providing financial advice. And, Barclays served as financial adviser to Oak Hill.
San Francisco, Calif. (July 27, 2017) – EPIC Insurance Brokers & Consultants, a retail property, casualty insurance brokerage, and employee benefits consultant, announced today that private equity firm Oak Hill Capital Partners (Oak Hill) has agreed to acquire all of The Carlyle Group’s stake, giving Oak Hill a controlling equity position in EPIC. Oak Hill’s investment will enable EPIC to continue its aggressive organic growth strategy and will support strategic acquisitions of additional complementary insurance distribution platforms across the United States.
Founded in July 2007, EPIC has become a leading national insurance broker with annual revenues approaching $300 million. The company has developed a broad suite of capabilities related to risk management, commercial property & casualty insurance, and employee benefits consulting, as well as specialty programs for a wide range of industries nationally, including construction and design, real estate development and property management, transportation and logistics, energy, hospitality, financial and professional services, healthcare, and food and beverage.
Since Carlyle acquired a controlling stake in December 2013 with equity provided by Carlyle Global Financial Services Partners L.P. and Carlyle Global Financial Services Partners II L.P., EPIC has transformed itself from a California-centric insurance broker into one of the top 20 nationally recognized platforms while more than tripling its revenues.
John Hahn, co-founder and CEO of EPIC, said, “Over the past 10 years, we have built EPIC into a unique and successful firm that is focused on providing innovative solutions and significant value to our clients and EPIC team members by creating a culture of accountability and alignment through broad-based employee ownership. We are thankful for the robust support, guidance, and access to resources we have received from The Carlyle Group over the past three and a half years, and look forward to building further on the strengths of our organization across the country with the strategic and financial backing of Oak Hill Capital Partners.”
Peter Garvey, President of EPIC, said, “We are proud of the unique ‘people first’ culture that we have built at EPIC. Our company will stay true to the guiding principles that were established when the business was launched 10 years ago. I am confident that with the support of Oak Hill, EPIC will continue to attract and retain the best talent in the industry and the clients who value them.”
Scott Kauffman, Partner at Oak Hill said, “We are excited to partner with John Hahn, Pete Garvey, their executive team, and the entire EPIC organization, all proven industry leaders, to continue supporting EPIC’s strong growth, innovation, and success in the insurance brokerage industry.”
John Redett, Managing Director and Co-head of Carlyle’s Global Financial Services team said, “We wish John Hahn and his team well as they continue to execute upon their strategic vision and buildout of EPIC. We believe in their business model and ability to capitalize upon the vast opportunity ahead of them, and are thankful to have played a part in their success over the past several years.”
The investment is subject to customary regulatory approvals and is expected to close in the 3rd quarter of 2017. Total Enterprise Value of EPIC now approaches $1 billion, at $977 million.
Bank of America Merrill Lynch acted as lead financial advisor and SunTrust Robinson Humphrey acted as financial advisor to EPIC. Wachtell, Lipton, Rosen & Katz served as EPIC’s legal advisor.
Barclays acted as financial advisor to Oak Hill and Weil, Gotshal & Manges served as Oak Hill’s legal advisor.
EPIC is a unique and innovative retail property & casualty and employee benefits insurance brokerage and consulting firm. EPIC has created a values-based, client-focused culture that attracts and retains top talent, fosters employee satisfaction and loyalty, and sustains a high level of customer service excellence. EPIC team members have consistently recognized their company as a “Best Place to Work” in multiple regions and as a “Best Place to Work in the Insurance Industry” nationally.
EPIC now has more than 1,000 team members operating from offices across the U.S., providing Property Casualty, Employee Benefits, Specialty Programs, and Private Client solutions to more than 20,000 clients.
With run rate revenues approaching $300 million, EPIC ranks among the top 20 retail insurance brokers in the United States and is the 10th largest privately held broker in the nation. Soon to be backed by Oak Hill Capital Partners, the company continues to expand organically and through strategic acquisitions across the country. For additional information, please visit www.epicbrokers.com.
About Oak Hill Capital Partners
Oak Hill is a private equity firm managing funds with more than $10 billion of initial capital commitments since inception from leading global endowments and foundations, public and corporate pension plans, sovereign wealth funds, insurance companies, financial institutions, consultants, and family offices. Over the past 30 years, the professionals at Oak Hill and its predecessors have invested in 84 significant private equity transactions across broad segments of the U.S. and global economies. Oak Hill applies an industry-focused, theme-based approach to investing in the following sectors: Consumer, Retail & Distribution; Industrials; Media & Communications; and Services. Oak Hill works actively in partnership with management to implement strategic and operational initiatives to create franchise value. For more information, please visit www.oakhillcapital.com.