Acrisure secures nearly $3.5 billion from investors
Posted On: Mar. 24, 2021 10:54 AM CST
Investment bank BDT Capital Partners led a nearly $3.5 billion investment in Acrisure LLC on Wednesday, buying out Blackstone Group LP and other institutional investors in the acquisitive brokerage.
Chicago-based BDT Capital will invest $3 billion in the Caledonia, Michigan-based brokerage’s senior preferred stock. In addition, another group of investors will purchase $454 million in junior preferred stock, giving Acrisure an implied enterprise value of $17.5 billion, an Acrisure statement said.
Acrisure has more than $2 billion in annual revenue, the statement said. It is the world’s 10th largest brokerage, according to Business Insurance’s latest ranking.
In addition to its institutional investors, much of the brokerage is owned by employees and management. Blackstone led a $2 billion investment in Acrisure in 2018.
Founded in 2005 by CEO Gregory L. Williams, the brokerage has been the leading acquirer of rival agencies and brokers over the past several years. Last year, it completed 110 transactions, including a $400 million deal to buy artificial intelligence company Tulco LLC’s insurance practice.
“Based on our data, AI foundation and global distribution capabilities, we will accelerate our growth in the insurance brokerage industry and into adjacent opportunities,” Mr. Williams said in the statement.