EQT and McGill and Partners have revealed that EQT X (EQT) has entered into a definitive agreement to acquire a majority stake in McGill and Partners from Warburg Pincus for $2 billion.
McGill and Partners was founded in May 2019 by Steve McGill alongside a core senior team that included John Lloyd, Stephen Cross and Karl Hennessy, with backing from Warburg Pincus, whose cornerstone investment reportedly supported the creation of a new category of re/insurance broker.
Steve McGill will continue to lead the firm as Chief Executive Officer, while Chairman John Lloyd will remain actively involved.
Both will remain as significant shareholders alongside the firm’s wider colleague base, while Warburg Pincus will sell its equity stake in full, marking a successful conclusion to the firm’s partnership.
McGill and Partners suggested that the agreement represents a significant milestone in its journey and reflects the significant organic growth it has achieved.
In seven years, it has grown from its founding as an “ambitious challenger” into a scaled global specialty broking business, with revenues in excess of $250 million, bringing together more than 600 colleagues across seven countries and serving over 1,000 insurance and reinsurance clients.
McGill and Partners added that the investment from EQT will enable it to continue its focus on driving disruptive innovation in a rapidly changing industry, with a differentiated client-first strategy and an exceptional track record of building industry-first digital solutions for clients and carrier partners.
EQT has reportedly committed to a new Equity Participation Plan to ensure long-term alignment. This is designed to give every colleague the opportunity to share directly in the continued growth and success of the firm.
A significant portion of that plan will be reserved to support the continued growth and deepening of the talent base at McGill and Partners over time, both within the firm’s existing specialty focus areas and beyond.
Steve McGill CBE, CEO, McGill and Partners, commented, “Our vision was to build an independent (re)insurance broker defined by its unparalleled expertise, cutting edge technology and an absolute focus on sophisticated clients who wanted an innovative approach to their larger or more complex risk.
“To have turned what was merely an idea seven years ago into a $2 billion 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.
“We are delighted to welcome EQT as our new partner and for our colleagues to retain a significant ownership stake in our firm. EQT’s track record of backing high-growth, best-in-class technology-enabled businesses makes them absolutely the right partner for the next stage of our journey.
“We are also deeply grateful for the unwavering backing and guidance of Warburg Pincus over the last seven years to help us build the leading specialty broker in the world. This milestone is a lasting reflection of a phenomenal partnership.”
Matthias Wittkowski, Global Co-Head of Services and Partner, EQT Private Equity, said, “McGill and Partners has established a strong position in specialty insurance broking underpinned by impressive organic growth.
“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.”
Miriam Tawil, Partner, EQT Private Equity added, “We have tremendous respect for what Steve and his team have built – their high-performance, entrepreneurial culture and compelling, innovative client proposition truly stand out in the market.
“Our growth mindset is well-aligned with McGill and Partners’ vision, and we look forward to investing in the team and platform to accelerate growth of its US and international client portfolio, further connecting the world to the Lloyd’s and London market.”
James O’Gara, Managing Director and Partner, Warburg Pincus, said, “From day one, we had enormous conviction in our shared vision for what McGill and Partners could become. As partners from inception, we have worked alongside Steve, John and the leadership team at every step and they have delivered on every dimension, building a genuinely new and innovative model in the specialty brokerage sector – truly a ‘category of one’.
“It has been a tremendous privilege to be part of that journey, and we exit immensely proud of what we have built together. This is precisely the kind of founder-led, high-conviction investment that Warburg Pincus was built to support – and the outcome speaks for itself.”
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