The future-focused strategy has driven Hub to grow five times in the last 10 years.
CHICAGO, April 28, 2023 /PRNewswire/ — Hub International Limited (HUB), a leading global insurance brokerage, today announced that it has entered into an agreement with Leonard Green & Partners, LP (LGP), a Los Angeles-based private equity firm. With a current total enterprise valuation of $23 billion, which represents the largest ever enterprise value for a private insurance broker, HUB expects to receive substantial minority investment from funds managed by LGP.
The hub’s valuation has grown five-fold in the last 10 years. When Hellman & Friedman (H&F) initially invested in the broker, HUB was valued at $4.4 billion and had annual revenue of over $1 billion. In 2018, just 4.5 years later, HUB’s revenue exceeded $2 billion and it was valued at $10 billion in connection with Altas Partners’ substantial minority investment in the company. In 2022, HUB will cross $3.7 billion in annual revenue and is valued at $23 billion today.
“Despite the headwinds of the pandemic, rising interest rates and the global economic downturn, HUB has demonstrated its ability to persevere and excel. We have delivered a 2.5X ROI over the last 4.5 years,” said Mark Cohen, Chairman and President . CEO, Hub International. “My optimism and energy for HUB’s future potential is fueled by our continued focus on investing in limitless resources providing best-in-class advice and solutions to our clients and our dedication to attracting and retaining the best talent in the industry.” confirms.”
HUB attributes its growth to industry and product expertise, digital solutions, brand marketing, expansion of employee benefits and HR services, expansion into retirement and personal wealth, increased MGA/wholesale capabilities, and recent investments in expansion gives. Complex risks and international solutions. The company will continue to invest in these areas as well as take new initiatives to reflect the changing needs of its customers. In addition, HUB is enthusiastic about its acquisition strategy and expanding its geographic footprint.
Today’s announcement also marks HUB’s intent to bring on additional minority investors in the coming months. The proceeds of these investments will be used to buy back equity interests from existing equity holders. H&F will retain a controlling-interest in HUB, while the company’s management team will retain significant equity positions. Additionally, Altas will remain a significant minority shareholder and a member of the board. LGP will join the board.
“HUB is an exceptional company – a gold-standard specialty-focused insurance broker,” said Hunter Philbrick, partner at Hellman & Friedman. “H&F takes great pride in our long-term approach with the companies we invest in, and it has been a privilege to support HUB’s incredible growth journey over nearly a decade. HUB is now the 5th largest broker in the world and today is growing faster. than at any other time in its history. We look forward to continuing our relationship with the company as the largest shareholder, along with the fantastic teams at Altas Partners and now at LGP.”
“The Hub is a remarkable business that has demonstrated success,” said Andrew Sheiner, CEO of Altas Partners. “We are proud to have been a part of its incredible journey and look forward to supporting the future success of The Hub alongside our amazing partners.”
“We have long admired HUB and are excited to partner with the entire HUB management team, Hellman & Friedman, and Altas to support the company’s next phase of growth. HUB is a premier insurance broker and Has all the attributes we look for in investments – a best-in-class management team, a differentiated culture, a long and consistent track record of success, and many ways to grow,” said Adam Levine, Partner at LGP.
The transaction is expected to close in Q3 2023 and is subject to customary closing conditions and regulatory approvals.
Morgan Stanley & Company LLC is acting as exclusive financial advisor to HUB, Simpson Thatcher & Bartlett LLP is acting as legal advisor to HUB, and Marshberry provided market research support to HUB. Barclays acted as exclusive financial advisor to LGP and Latham & Watkins LLP acted as legal advisor.
About Hub International
Hub International Limited is headquartered in Chicago, Illinois and is a leading full-service global insurance broker and financial services firm providing risk management, insurance, employee benefits, retirement and wealth management products and services. With more than 16,000 employees in offices located across North America, Hub’s vast network of experts brings clarity to a changing world with tailored solutions and ongoing support, so customers are ready for tomorrow. For more information, visit the Hub Media Center.
About Hellman & Friedman
Hellman & Friedman is a leading global private equity firm with a distinctive investment approach focused on a limited number of large-scale equity investments in high-quality growth businesses. H&F seeks to partner with world-class management teams where its in-depth sector expertise, long-term orientation and collaborative partnership approach enable companies to thrive. H&F targets outstanding businesses in select sectors including software and technology, financial services, healthcare, consumer and retail, and other business services.
Since its founding in 1984, H&F has invested in over 100 companies. The firm is currently investing its tenth fund with committed capital of $24.4 billion, and has over $85 billion in assets under management as of December 31, 2022. Learn more about H&F’s defined investment philosophy and vision for sustainable results at www.hf.com. ,
About Altas
Founded in 2012, Altas Partners is a North American private equity firm with a distinctive investment approach focused on acquiring significant interests in high-quality and market-leading businesses with meaningful growth potential. Altus focuses on select sectors where it has deep expertise, finding one or two compelling investment opportunities each year. The firm’s patient investment philosophy, engaged approach to ownership, and flexible time horizon differentiate Altas as the buyer of choice for many management teams and founders. Headquartered in Toronto with a secondary office in New York, Altas manages approximately $10 billion on behalf of leading global institutional and family office investors. Please visit www.altas.com for more information.
About LGP
Leonard Green & Partners, LP (“LGP”) is a leading private equity investment firm founded in 1989 and based in Los Angeles with $70 billion in assets under management. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in more than 120 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and select public equity and debt positions. The firm focuses primarily on companies providing services, including consumer, healthcare and business services, as well as retail, distribution and industry. Please visit www.leonardgreen.com for more information.
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