EQT to buy McGill and Partners in $2bn deal
EQT, the private equity group, is to acquire a majority stake in McGill and Partners in a deal valuing the London-headquartered specialty re/insurance broker at $2 billion.
Warburg Pincus, which backed the firm from its launch in 2019, will sell its entire holding under the agreement. Steve McGill, founder and chief executive; John Lloyd, chairman; and other colleagues will reinvest alongside EQT and retain a meaningful stake.
McGill and Partners has an office in Bermuda, as well as operations in the United States, Ireland, Australia, Switzerland and Sweden. The company said it has grown to more than 600 employees across seven countries, with annual revenues of more than $250 million and over 1,000 clients.
Mr McGill said: “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 are delighted to welcome EQT as our new partner and for our colleagues to retain a significant ownership stake in our firm.”
EQT said it would support the broker’s global expansion through recruitment, investment in technology and the development of digital products.
Matthias Wittkowski, global co-head of services and partner at EQT Private Equity, said McGill and Partners had built “a strong position in specialty insurance broking underpinned by impressive organic growth”.
He added that the investor would work with the company as it scaled “a differentiated platform” built around specialist talent, data, analytics and its technology platform.
Miriam Tawil, a partner at EQT Private Equity, said the deal would help speed the company’s growth in the US and internationally, while connecting clients with the Lloyd’s and London insurance market.
McGill and Partners said all employees would benefit financially from the transaction through its employee ownership structure. EQT has also committed to an equity participation plan to give colleagues a stake in the company’s future growth.
The transaction is subject to customary regulatory approvals.
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