Investment marks ‘step change’ in evolution of the brokerage sector.
London, UK Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has agreed to acquire a significant equity stake in PIB insurance Ltd. PIB is currently owned by its management team and external private investors.
PIB is a fast growing insurance broker, founded in 2014, created to fill a gap in the market for a new independent, client-centric and service-focused broker. PIB employs senior, experienced individuals from the insurance market, and has already demonstrated its ability to differentiate itself, by offering high levels of expertise and service in specialist client sectors. The firm has a growing network of offices in London and across the UK.
Capital for this investment will come from Carlyle Global Financial Services Partners II, a fund that invests in management buyouts, growth capital opportunities and strategic investments in financial services firms globally. This will be the second investment by the fund in a UK insurance firm following its earlier investment in Barbon.
The transaction is expected to close in the second quarter of 2016, subject to regulatory approvals.
Brendan McManus, the CEO of PIB, commented: “We are delighted to partner with Carlyle, which has deep experience in identifying and investing in high-potential financial services companies and an in-depth knowledge of the insurance sector. Their investment provides PIB with significant funding for its acquisition programme as well as an accelerated recruitment drive across the UK.”
Chris Giles, Chairman of PIB said: “PIB will be a major consolidator of insurance distribution businesses and we have assembled a management team that has the capability and strong sector insight needed to drive both the organic growth and acquisition strategies we have agreed with our partners at Carlyle.”
Olivier Sarkozy, Carlyle Managing Director and head of the Global Financial Services Fund, added: “PIB is a young business and we are investing early because of the strength and vision of its management team. The company’s track record and the firm’s performance to date all point to exceptional growth potential.
Companies today have to address ever more complex risk profiles and I believe PIB’s offering of high levels of bespoke service, guidance and expertise addresses a clear gap in the market. We see an exciting opportunity to scale this proven model and to build out and develop new lines of business and specialisms, supported, where appropriate, by the issue of further equity.”
Carlyle was advised by BNP Paribas and Linklaters. PIB was advised by Jamison Corporate Finance.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $188 billion of assets under management across 126 funds and 160 fund of funds vehicles as of September 30, 2015. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700+ people in 35 offices across six continents.