Acrisure, the expansive insurance and reinsurance broking group, has seen its valuation spike by 31% in little over a year to $23 billion, as the firm announces the closure of $725 million in additional funding to fuel further growth.
The $725 million has been secured through a Series B-2 Preferred Equity financing round, led by a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), with participation from Guggenheim Investments on behalf of certain clients and Oak Hill Advisors.
According to the re/insurance broker, the additional funding enables it to continue pursuing value-accretive acquisitions, expand its technology-enabled solutions, bolster both marketing and brand awareness, and invest in human and tech infrastructure to support its global expansion efforts.
This latest equity raise, which immediately lowers the company’s net debt leverage by 0.6x, follows Acrisure’s preferred equity raise in March 2021, when it raised $3.4 billion in two transactions.
Greg Williams, Co-Founder, Chief Executive Officer (CEO) and President of Acrisure, commented, “This investment is a testament to our strategic direction and ability to innovate and adapt to the needs of our customers.
“We are thrilled to partner with ADIA and OHA, premier, globally recognized investment institutions, and continue our work with Guggenheim. This transaction reaffirms how the market, and our partners, value the strength of our performance and trajectory for future growth.”
Hamad Shahwan Aldhaheri, Executive Director, Private Equities Department, ADIA, added, “Acrisure has grown at a rapid pace to become one of the world’s leading insurance brokers, and our investment aims to support the company as it continues to execute on its strategy. This transaction adds to our extensive portfolio of investments across the insurance industry value chain, a large and attractive market backed by long‑term growth trends.”
Acrisure, which was formed out of retail insurance agency networks, acquired Beach & Associates in 2018, a specialist insurance and reinsurance broker which often arranges trades with collateralized and ILS fund markets.
Since then, Beach’s operations have been integrated into Acrisure and was rebranded in 2020 as reinsurance specialist Acrisure Re and Acrisure London Wholesale.