BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Hub secures additional private-equity investment


Hub International Ltd. said Friday that Los Angeles-based private-equity firm Leonard Green & Partners LP would make “a substantial minority investment” that values the brokerage at $23 billion.

The money will used to buy out some shares of existing investors, and Hub plans to bring in further minority investors in the next few months, Hub CEO Marc Cohen said in an interview.

The brokerage, which is the largest private-equity-owned insurance brokerage and has been one of the most acquisitive brokers over the past 20 years, plans to continue acquiring rivals, he said.

Hellman & Friedman, which invested in the brokerage in 2013, will continue to hold a controlling interest in Hub, and Altas Corp., which invested in Hub in 2018, will remain a significant minority shareholder in the brokerage.

“The money that’s coming in is going to help provide liquidity for existing shareholders,” Mr. Cohen said. “But it’s important to note Leonard Green Partners and Hellman & Friedman are open to additional investments in the organization to support future growth initiatives and strategies.”

The $23 billion enterprise valuation represents about a 2.5 return on equity compared with the valuation at the time of the Altas deal “despite incredible headwinds,” including the COVID-19 pandemic, Mr. Cohen said.

Hub’s revenue hit $3.7 billion in 2022. It has been one of the most acquisitive brokerages over the past 20 years. Last year, Hub completed 70 deals and it remained active in the first quarter of 2023 announcing 10 deals, according to Optis Partners LLC.

The M&A markets for insurance agents and brokers, which has been active for several years and reached record levels in 2021, began to slow in the second half of 2022.

Hub, though, plans to continue with its aggressive acquisition strategy.

“We’re on track in 2023 to have the best year that we’ve had from an acquisition standpoint, both in terms of revenues and in number of acquisitions,” Mr. Cohen said.

Target areas for growth include managing general agents, retirement planning and wealth management companies, and regional expansion, he said.

Hub is the fifth largest brokerage in the world, according to Business Insurance’s most recent ranking. Its business is split is about 47% commercial retail, 29% employee benefits, 15% personal lines and 8% wholesale.