PCF completes management and partner-led buyout from HGGC

PCF is a retail insurance brokerage.

PCF Insurance Services has closed a management and partner-led buyout from HGGC. PCF is a retail insurance brokerage. HGGC will retain a minority stake in PCF.

PRESS RELEASE

PCF Insurance Services (“PCF”), a leading national insurance brokerage, today announced that it has completed a management and partner-led buyout of PCF from financial sponsor HGGC, which values the business at more than $2.2 billion. The transaction, including financing of more than $1 billion, was led by PCF’s Chief Executive Officer, Peter C. Foy, along with the firm’s executive team, partner investor firm, Owl Rock, a division of Blue Owl, and strategic advisory firm, Sica Fletcher. HGGC will retain a minority interest in the business.

PCF is a leading retail insurance brokerage with a diverse offering of commercial lines, personal lines, and employee benefits products serving more than 220,000 clients. Since HGGC’s 2020 investment, PCF has proliferated, completing over 100 partner transactions and is currently on pace to finish 2021 as one of the industry’s top three acquirers. Now a top 20 broker, PCF anticipates closing out the year with nearly $400 million in revenue and over 1,700 employees.

Foy, who founded the business said, “This transaction marks a tremendous milestone for the business and, more importantly, our partners. We evaluated several avenues which could support the pace at which we are seeking to grow, with this option providing the unique ability to control our destiny driven solely by doing what is best for our partners. HGGC helped support PCF’s high-growth plan and we are thrilled they will continue to stay on as a shareholder as we further our mission to bring on high-performing, entrepreneurially minded partners to achieve our ambitious goals and strategies.”

Lukas Spiss, Managing Director at Owl Rock, a division of Blue Owl stated, “We are pleased to offer a flexible capital solution that leverages our investment expertise in private markets which can position PCF for sustainable long-term growth. We look forward to continue working with Peter and HGGC over the coming years and are excited for what we can accomplish together.”

HGGC Partner, John Block, added, “HGGC has been extremely proud of and impressed by the pace of growth PCF has demonstrated since our partnership, and we are excited to continue to support Peter and his team as PCF continues to grow as an important and influential player in the U.S. insurance landscape.”