Global buyout major Partners Group has agreed to acquire specialist insurance broker Foundation Risk Partners from Warburg Pincus.
Warburg Pincus will retain a meaningful minority position in the company.
Headquartered in Florida, FRP helps small to mid-sized businesses and high net worth individuals with commercial insurance, employee benefits, personal insurance, and risk management services.
Its services include evaluating risks, securing appropriate coverage, ensuring competitive pricing, and managing claims.
The company has 139 offices in America with a primary focus in Florida, New Jersey, New York and California.
The firm said insurance brokerage is a large market that has proven highly resilient through economic cycles as insurance coverage is a non-discretionary expense.
New risks including cyber and social media exposure, increase in the cost and frequency of litigation; and an evolving regulatory environment that emphasizes the need for insurance advice and coverage had all further boosted the industry.
Joel Schwartz, partner and co-head private equity services at Partners Group, said, “FRP provides us with access to the growing insurance brokerage market in the US, which benefits from stable non-discretionary demand and favorable tailwinds.
“We have been tracking this market for several years and were attracted to FRP’s diversified service offering and client base, as well as the transformational platform-building opportunity it represents. We look forward to working with FRP’s very experienced management team on implementing the value creation plan.”
Jeff Stein, managing director at Warburg Pincus, added, “Since its launch over five years ago, we have seen FRP experience a transformative period of organic and acquisitive growth, while building out robust capabilities in technology integration.
“We are proud of our partnership with Charlie and the Foundation Risk Partners team to-date and believe the Company is well-positioned for continued success as a leading insurance agency. We are excited to work with Partners Group moving forward as the Company enters this next phase of growth.”
$131bn-managing Partners Group raised $6bn for the final close of its fourth flagship direct equity fund last September, and another $9bn through related private markets programmes and bespoke client solutions that will invest alongside the fund.
Recent deals from the firm include buying into manufacturing software provider Forterro at €1bn valuation, exiting Taco Bell US franchisee Pacific Bells to special situations investor Orangewood Partners and teaming with New York-based investment firm Kohlberg & Co to jointly acquire real estate restoration service provider BluSky Restoration Contractors.
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