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Specialty broker partners with private equity firm

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Dallas-based U.S. Risk Insurance Group Inc. has entered into a definitive agreement with Kohlberg & Co. L.L.C. for a “significant transaction and partnership” with the Mount Kisco, New York-based private equity firm.

U.S. Risk said Wednesday that Kohlberg, through its $1.6 billion private equity fund, Kohlberg Investors VII L.P., will invest in U.S. Risk and reserve substantial additional equity capital to support the company's growth initiatives.

Terms of the agreement were not disclosed. The transaction is expected to be completed during the third quarter, U.S. Risk said, subject to regulatory approval.

Randall Goss, U.S. Risk's founder, chairman and CEO, will remain in his current position following the transaction and will continue to be the company's largest individual stockholder.

“I've been looking for the capability of growing and expanding the U.S. Risk business to effectively reach the next level,” Mr. Goss said. “To date we have primarily grown through our own internal resources, and I wanted to align U.S. Risk with a very professional, experienced financial partner that could help us grow our business.”

Once the transaction closes, Kohlberg & Co.'s financial services operating partner Scott Birnbaum and insurance industry veteran Roger Egan will join U.S. Risk's board of directors, the statement said.

“US Risk as it currently operates has a robust platform to enable us to acquire additional businesses,” Mr. Goss said, “and in that way we can grow our business. We're also going to be looking to acquire strategic individuals and teams of people. We'll be actively recruiting talent as a part of the overall organic growth plan.”

According to its website, Kohlberg has organized seven private equity funds with aggregate commitments of $5.3 billion since its inception in 1987. Kohlberg has completed 68 platform investments and 150 add-on acquisitions, with total transaction value of roughly $10 billion.

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