Swedish investment firm EQT has agreed to buy a majority stake in speciality reinsurance broker McGill and Partners from Warburg Pincus in a deal valued at $2bn (Skr19.2bn).
Under the deal, Warburg Pincus will sell its equity stake in full.
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McGill’s founders, management team and colleagues will reinvest alongside EQT and retain a meaningful ownership stake in the company.
Founder and CEO Steve McGill will continue to lead the business, while chairman John Lloyd will stay actively involved.
Both will remain significant shareholders alongside the wider colleague base.
McGill was established in May 2019 by McGill with a core senior team comprising Lloyd, Stephen Cross and Karl Hennessy, with backing from Warburg Pincus.
McGill said: “To have turned what was merely an idea seven years ago into a $2bn global specialty enterprise is an achievement we are all incredibly proud of. We have built our firm person-by-person and client-by-client, creating a business powered by the most exceptional talent ever assembled at scale in this industry.”
The company has grown into a global specialty broking business with revenues exceeding $250m.
It employs more than 600 people across seven countries and serves more than 1,000 insurance and reinsurance clients.
EQT said it plans to support McGill’s growth strategy through talent recruitment, further development of technology and data capabilities, and expansion of digital solutions, while maintaining the company’s independence and existing culture.
It has also committed to a new Equity Participation Plan designed to give all colleagues the opportunity to share in the company’s future growth, with part of the plan set aside to support recruitment of additional talent.
McGill said all colleagues will financially benefit from the transaction through the company’s existing all-employee ownership structure.
The transaction remains subject to customary closing conditions.
EQT private equity services global co-head and partner Matthias Wittkowski added: “We are thrilled to partner with Steve, John and their talented team at an exciting point in the business’s growth trajectory as they double down on their ambition to scale what is clearly a differentiated platform, underpinned by exceptional talent, data, analytics and a custom built, singular technology platform.”
