American insurance brokerage Hub International has reached an agreement to receive an undisclosed minority investment from funds managed by US-based private equity firm Leonard Green & Partners (LGP).

Hub is currently valued at $23bn, growing from $4.4bn in valuation and annual revenue of over $1bn in 2013 when Hellman & Friedman (H&F) first invested in the firm.

The latest deal represents HUB’s plan to explore garnering new minority investments in the next few months.

Hub will use these investments to repurchase equity interests from its current equity holders.

Once the new deal is completed, H&F will continue to own a controlling-stake in HUB, with the firm’s management retaining a substantial equity position.

Besides, Altas Partners, which previously made a minority investment in Hub, will continue to become a significant minority shareholder and members of the board.

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LGP will also join the board of Hub.

The deal, which is subject to customary closing conditions and regulatory clearances, is anticipated to be completed by the third quarter of this year.

Hub International president and CEO Marc Cohen said: “Despite the headwinds of the pandemic, interest rate hikes, and a global economic downturn, HUB has demonstrated its ability to persevere and excel.

“In the last 4.5, years we’ve delivered a 2.5 times ROI.

“Our relentless focus on investing in boundaryless resources that provide best-in-class advice and solutions for our customers and our dedication to attracting and retaining the best talent in the industry affirms my optimism and energy for the future potential of HUB.”

Last month, Hub International announced the purchase of the assets of DeFranco Insurance.