Partners Group to acquire Foundation Risk Partners, a specialist insurance broker in the US, from Warburg Pincus

Partners Group / Key word(s): Acquisition/Investment Partners Group to acquire Foundation Risk Partners, a specialist insurance broker in the US, from Warburg Pincus 09.08.2022 / 16:00 CET/CEST New York, US; 9 August 2022

• FRP has a footprint of 139 offices across 18 states
• Insurance distribution is a large, fragmented market that has proved highly resilient
• FRP has seen strong growth under Warburg Pincus' ownership; Partners Group's future value creation plan will focus on expanding into new geographies 

Partners Group, a leading global private markets firm, has, on behalf of its clients, agreed to acquire a controlling stake in Foundation Risk Partners ("FRP" or "the Company"), a specialist insurance broker in the US, from Warburg Pincus. FRP's management will maintain a substantial stake in the business while Warburg Pincus will retain a meaningful minority position.

Headquartered in Daytona Beach, Florida, FRP assists businesses and private individuals in navigating the complex US insurance landscape. The Company's areas of expertise include commercial insurance, employee benefits, personal insurance, and risk management services. FRP helps clients, which include small to mid-sized businesses and high net worth individuals, evaluate risks, secure appropriate coverage, ensure competitive pricing, and manage claims. It has a footprint of 139 offices across 18 states, with a primary focus in Florida, New Jersey, New York, and California. The Company generates revenues from fees on the initial placement and the recurring annual renewal of insurance policies, leading to highly predictable cash flows. Insurance brokerage is a large market that has proven highly resilient through economic cycles as insurance coverage is a non-discretionary expense. The market further benefits from several transformative trends including the emergence of new risks, such as cyber and social media exposure; the increase in the cost and frequency of litigation; and an evolving regulatory environment that emphasizes the need for insurance advice and coverage.