Private equity firm EQT has agreed to acquire a majority stake in London-based specialty insurance broker McGill and Partners from Warburg Pincus in a deal valued at $2bn (£1.5bn).
The firm’s founder and chief executive Steve McGill will continue to lead the business alongside chairman John Lloyd. Both executives and the wider workforce will retain a significant equity stake, while Warburg Pincus will exit its investment entirely.
Founded in May 2019, the broker has grown to generate more than $250m (£185m) in annual revenue across seven countries. The firm currently employs more than 600 people and serves over 1,000 corporate clients.
EQT plans to support the broker’s expansion by funding recruitment, developing technology capabilities and building digital services. The investment will also expand the company’s client portfolio in the US and international markets while maintaining its link to the Lloyd’s and London insurance market.
The acquisition will include an equity participation plan allowing all employees to hold a financial stake in the firm’s future growth. Advisers on the transaction included Evercore, Perella Weinberg Partners, Freshfields Bruckhaus Deringer and Clifford Chance.
Steve McGill, chief executive of McGill and Partners, said: “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 $2bn global specialty enterprise is an achievement we are all incredibly proud of.”
Matthias Wittkowski, partner at EQT, 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.”
James O’Gara, partner at Warburg Pincus, added: “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. It has been a tremendous privilege to be part of that journey and we exit immensely proud of what we have built together.”
