Valuation of $4.7
billion driven by 10% organic growth
LEHI, Utah,
Feb. 17,
2023 /PRNewswire/ -- PCF Insurance Services ("PCF"),
a top 20 U.S. insurance brokerage firm, today announced that it has
secured a $500 million preferred
equity investment in a transaction co-led by Carlyle's Global
Credit platform and private equity firm HGGC, an existing minority
investor. PCF Insurance, led by Founder, Chairman and CEO
Peter C. Foy and Chief Financial
Officer and Chief Operating Officer Felix
Morgan, also received significant investment participation
in the transaction with funds managed by Owl Rock, a division of
Blue Owl, and Crescent Capital, both of which have existing
minority equity stakes in the business. At the time of investment,
the valuation of PCF Insurance is $4.7
billion. J.P. Morgan served as the sole placement agent to
PCF Insurance in connection with the transaction.
![Peter C. Foy, Founder, Chairman & CEO Peter C. Foy, Founder, Chairman & CEO](https://mma.prnewswire.com/media/2005053/PCF_Peter_C_Foy.jpg)
PCF Insurance is a risk management, benefits design, and
insurance brokerage services company serving more than 415,000
clients. Since executing its management-led buyout in November 2021, PCF Insurance completed more than
100 partner transactions and increased its revenue to $700 million, while maintaining organic growth of
10%, by year-end 2022. Focusing on its proven practices,
innovative, data- driven strategies, entrepreneurial spirit and the
strong local relationships of its Agency Partners, PCF Insurance
leverages the industry knowledge and experience of its more than
3,100 employees across 38 states to provide its first-class, highly
diversified suite of services.
"This transaction marks a significant milestone in our pursuit
of building a premier insurance brokerage firm in the U.S.," said
Foy. "We have built our agency-centric business model around
long-term, sustainable growth, and I'm proud that PCF is positioned
to continue investing in the growth of our agencies, especially
during these recent times of economic uncertainty. We are grateful
for the contributions of our partner investors who have supported
us with the unique opportunity to accelerate growth."
Gary Jacovino, Managing Director
for Carlyle Global Credit, said, "PCF Insurance Services has
experienced tremendous growth as a result of its unique client- and
employee-centric operating model. We are delighted to be partnering
with an exceptional management team and group of Agency Partners,
and are confident PCF will achieve its long-term strategic growth
objectives with the support of Carlyle Global Credit, HGGC and our
partner investors."
Matt Roesch, Principal of HGGC
and PCF Insurance board member, added, "We continue to be impressed
with the growth and operational advancements PCF has achieved since
the onset of our partnership in 2020. We elected to continue as
minority shareholders after the management buyout in 2021 because
we see a very bright future for the business, and we are thrilled
to extend our partnership with PCF, working in collaboration with
Carlyle's Global Credit platform, to help fuel its next phase of
growth."
About PCF Insurance Services
A top 20 U.S. broker headquartered in Lehi, Utah, PCF Insurance Services is a
leading full-service consultant and insurance brokerage firm
offering a broad array of commercial, life and health, employee
benefits, and workers' compensation solutions. Propelled by its
people, PCF Insurance's agency-centric operating model and
entrepreneurial environment support its tremendous growth profile,
offering partner agencies alignment through equity ownership,
significant leadership incentives, and resources. Ranked #20 on
Business Insurance's 2022 Top 100 Brokers and #13 on Insurance
Journal's 2022 Top Property/Casualty Agencies, PCF Insurance is a
notable leader in the insurance space, with 3,100 employees across
the U.S. Learn more at pcfins.com.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep
industry expertise that deploys private capital across three
business segments: Global Private Equity, Global Credit and Global
Investment Solutions. With $373
billion of assets under management as of December 31, 2022, Carlyle's purpose is to invest
wisely and create value on behalf of its investors, portfolio
companies and the communities in which it lives and invests.
Carlyle employs more than 2,100 people in 29 offices across five
continents. Further information is available at carlyle.com. Follow
Carlyle on Twitter @OneCarlyle.
About HGGC
HGGC is a leading middle-market private equity firm with over
$6.9 billion in cumulative capital
commitments. Based in Palo Alto,
California, HGGC is distinguished by its Advantaged
Investing approach that enables the firm to source and acquire
scalable businesses through partnerships with management teams,
founders and sponsors who reinvest alongside HGGC, creating a
strong alignment of interests. Since its inception in 2007, HGGC
has completed more than 600 platform investments, add-on
acquisitions, recapitalizations, and liquidity events with an
aggregate transaction value of over $71
billion. More information, including a complete list of
current and former portfolio companies, is available at
hggc.com.
About Blue Owl
Blue Owl is a global alternative asset manager with $138.2 billion of assets under management as of
December 31, 2022. Anchored by a
strong permanent capital base, the firm deploys private capital
across Direct Lending, GP Capital Solutions and Real Estate
strategies on behalf of Institutional and Private Wealth clients.
Blue Owl's flexible, consultative approach helps position the firm
as a partner of choice for businesses seeking capital solutions to
support their sustained growth. The firm's management team is
comprised of seasoned investment professionals with more than 30
years of experience building alternative investment businesses.
Blue Owl employs over 545 people across 10 offices globally. For
more information, please visit blueowl.com.
About Crescent Capital
Crescent Capital is a global credit investment manager with $40+
billion of assets under management. For over 30 years, the firm has
focused on below investment grade credit through strategies that
invest in marketable and privately originated debt securities
including senior bank loans, high yield bonds, and private senior,
unitranche, and junior debt securities. Crescent Capital is
headquartered in Los Angeles with offices in New York, Boston, Chicago and London and more than 210 employees globally.
For more information, please visit crescentcap.com.
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SOURCE PCF Insurance Services