Global investment firm acquires majority share in specialty broker for £1.5bn

EQT has agreed to acquire a majority stake in specialist (re)insurance broker McGill and Partners from Warburg Pincus in a transaction valuing the business at $2bn (£1.48bn).

Under the agreement, McGill and Partners founder and chief executive Steve McGill will continue to lead the business, while chairman John Lloyd will remain actively involved. Both will retain significant shareholdings alongside the firm’s employee shareholder base.

The deal brings to an end Warburg Pincus’ investment in the broker, which backed the launch of McGill and Partners in 2019.

EQT said it will support the broker’s next phase of growth through investment in talent, technology, data capabilities and digital propositions, while maintaining the firm’s existing culture and independent operating model.

Miriam Tawil, partner at EQT private equity, said: “We have tremendous respect for what McGill 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.”

Milestone

Since its launch seven years ago, McGill and Partners has grown into a global specialty broker generating more than $250m (£185m) of revenue. The business employs more than 600 people across seven countries and serves more than 1,000 insurance and reinsurance clients worldwide.

McGill said the transaction marked a significant milestone in the firm’s development.

He added: “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.”

James O’Gara, managing director and partner at 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 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.”