California brokerage group starts on acquisition trailPosted On: Jan. 20, 2021 2:38 PM CST
Recently formed brokerage group Alkeme Holding LLC expects to more than double in size this year as it embarks on a series of acquisitions, its top executive said.
Ladera Ranch, California-based Alkeme launched last October with the combination of six affiliated brokerages in California and a Scottsdale, Arizona-based investment management firm.
The company is backed by New York-based private equity investment firm GCP Capital Partners LLC, which previously was an investor in Grand Rapids, Michigan-based brokerage Acrisure LLC, which has grown rapidly through acquisitions over the past decade.
Alkeme has about $30 million in revenue and will likely double in size in 2021, said CEO Curtis Barton, who is also CEO of Venture Pacific Insurance Services Inc., one of Alkeme’s six founding brokerages.
The business is about 60% middle-market commercial property/casualty insurance, with the remainder employee benefits and personal lines, he said.
Alkeme has signed letters of intent to buy seven other brokerages and expects to close the deals in the first quarter, Mr. Barton said.
The acquisitions will expand the brokerage’s operations into other states, including on the East Coast and in the Midwest, he said.
“We want to build a company that’s sustainable, with people that want to stay with the company and work,” he said. “We want to buy companies that have niches that we can grow off of, or have a strategic advantage for the company as we put the pieces of the puzzle together.”