HUB International secures $1.6bn investment at $29bn valuation
HUB International has secured a $1.6bn minority common equity investment, valuing the company at $29bn.
In a statement issued on 12 May, HUB said that this valuation is the 'largest enterprise value to date' attained by a private insurance broker.
The infusion was led by funds and accounts advised by T. Rowe Price Investment Management, Alpha Wave Global and Temasek, with additional contribution from other investors.
HUB was valued at $4.4bn during Hellman & Friedman's initial investment in 2013.
The Chicago-based insurance brokerage's valuation grew to $10bn during Altas Partners' minority stake acquisition in 2018 and soared to $23bn during Leonard Green & Partners' investment in 2023.
HUB's annual revenue surged to $4.8bn in 2024 from $1.1bn in 2013.
The latest infusion furthers HUB's commitment to shareholder liquidity via a Liquid Private Placement, introduced with Leonard Green & Partners' investment in 2023.
Hellman & Friedman will continue to hold a controlling interest in HUB and the management team will also maintain a 'significant' equity stake.
Altas and Leonard Green & Partners will remain 'significant' minority shareholders and retain their board representation.
'Lack of selling appetite allowed the investment proceeds to provide primary capital for growth initiatives and other general corporate purposes, such as acquisitions, debt repayments, and maintaining excess cash on HUB's balance sheet,' the brokerage said.
HUB stated that the investment proceeds will not be used for secondary redemptions of current equity holders.
Morgan Stanley Smith Barney and Goldman Sachs were financial advisors to HUB, while Simpson Thacher & Bartlett provided legal counsel for the deal, which is due to close by the end of this month.
HUB International chairman and CEO Marc Cohen said: 'Our ongoing investments in innovation, proprietary products, and strategic M&A [mergers and acquisitions], along with our commitment to learning and development, has led to consistent performance and strength in our organic growth and new business generation.'
Recently, HUB acquired the assets of Allegiant Global Partners, a US-based consultancy, as part of its expansion strategy.
"HUB International secures $1.6bn investment at $29bn valuation " was originally created and published by Life Insurance International, a GlobalData owned brand.
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