Hub International has raised nearly $1.6 billion in a funding round that valued the Hellman & Friedman-backed insurance broker at $29 billion and was led by T Rowe Price, Alpha Wave Global and Singapore’s state investor Temasek.
The investment, however, could push back any plans for a potential return to the public market, underscoring a trend where several companies are delaying their flotations to avoid regulatory demands with the help of ample private capital.
Such deals allow buyout firms to retain their portfolio companies longer while widening the investor base.
Hub, acquired by H&F in a $4.4 billion deal in 2013, said on Monday it does not expect to use the proceeds to meet redemption requests for investors. The $29 billion is the largest enterprise value for a private insurance broker, it said.
“A $29 billion valuation in this environment tells you investors are betting on future consolidation and growth. It also puts Hub in a strong position if they decide to revisit public markets,” said NMS Capital Group CEO Trevor Saliba.
The Chicago, Illinois-based insurance brokerage was valued at $23 billion in 2023. Formed in 1998 by merging 11 Canadian brokerages, Hub listed on the Toronto Stock Exchange in 1999 and the New York Stock Exchange in 2002, before being taken private in 2007.
Hub follows a playbook common in many partnerships between private equity and insurance players. Backed by well-funded private firms, it has completed several “roll-up” acquisitions to consolidate its presence in a fragmented market.
“A deal like this doesn’t happen unless there’s real conviction behind the model. This shows there’s still deep appetite for scaled broker platforms,” Saliba said.
Since Hub’s acquisition by H&F, its annual revenue has grown more than fourfold. The company focuses on middle- and upper-middle-market clients.
H&F will retain a controlling interest in Hub. Morgan Stanley and Goldman Sachs advised Hub on the transaction.
Reuters
