SkyKnight invests in Heffernan

SkyKnight Capital has made an investment in Walnut Creek, California-based Heffernan Insurance Brokers, a retail insurance brokerage platform. No financial terms were disclosed. Waller Helms Advisors was financial adviser on the transaction.

PRESS RELEASE

SAN FRANCISCO–(BUSINESS WIRE)–SkyKnight Capital (“SkyKnight”) announced that it has made an investment into Heffernan Insurance Brokers (“Heffernan”), a leading independent retail insurance brokerage platform headquartered in Walnut Creek, California.

Founded in 1988, Heffernan provides comprehensive business insurance, personal insurance, employee benefits and financial services and has 450 team members in 10 branch offices across the U.S. and London. Heffernan has grown revenue to over $100 million, primarily through organic growth along with selected acquisitions. Heffernan prides itself on a culture dedicated to serving its clients’ needs across niche practices including nonprofit, construction, healthcare, transportation and hospitality.

“We are excited to bring SkyKnight on as a value-added partner to help execute on our next phase of growth,” said Mike Heffernan, President and CEO of Heffernan. “SkyKnight’s minority investment allows us to gain valuable strategic and financial support, while retaining our independence and our culture of employee ownership.”

The investment recapitalized the company’s ESOP and positions Heffernan to pursue its vision to build the leading independent, employee-owned retail insurance broker.

SkyKnight Partner Claude Burton said, “Heffernan distinguishes itself with its outstanding team, unique customer-oriented culture, proven organic growth and entrepreneurial, tech-forward approach. We see a significant opportunity to further build Heffernan’s leading platform by accelerating strategic M&A, forging partnerships with other independent brokers, and expanding the team with select hires.” Claude Burton has joined the Board of Directors of Heffernan.

Matt Ebbel, Managing Partner of SkyKnight, added, “We are thrilled to partner with Heffernan as we are investing alongside an amazing entrepreneur and management team. This investment in Heffernan is consistent with SkyKnight’s strategy to make investments where we can execute a long-term buy and build strategy as a minority partner and facilitate value creation for all owners. The investment is our second investment in the insurance distribution sector and further expands our Business Services practice.”

Waller Helms Advisors, a Chicago-based, independent advisory firm with substantial expertise in insurance served as exclusive financial advisor.

The Heffernan investment is the fourth investment from SkyKnight Capital Fund II, L.P.

Founded in 2015, SkyKnight focuses on partnering with high quality businesses in acyclical growth sectors alongside exceptional management teams. SkyKnight manages patient capital on behalf of institutional family offices and leading foundations and endowments. The firm is based in San Francisco and seeks investments in Healthcare and Business Services. SkyKnight makes equity commitments ranging from $20 million to over $200 million.