ADIA Makes a Co-Investment in UK Insurance Broker Ardonagh Group
Posted on 12/15/2021
The Ardonagh Group announced a significant new equity investment into the company led by existing long-term shareholders Madison Dearborn Partners, LLC (MDP) and HPS Investment Partners (HPS), alongside new co-investors through accounts managed by MDP and HPS, including a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and several other large global institutions.
Under the terms of the transaction, funds affiliated with MDP will increase their shareholding in Ardonagh Group and HPS will reinvest in Ardonagh Group. Co-investors, including a wholly owned subsidiary of ADIA and several other large global institutions, will also acquire more than US$ 1 billion equity through accounts managed by MDP and HPS as part of the transaction, which values Ardonagh at US$ 7.5 billion.
Ardonagh was founded in 2017. As of September 30, 2021, Ardonagh had an LTM (Last Twelve Months) Pro-Forma Income of US$ 1.5 billion and LTM Pro-Forma Adjusted EBITDA of US$ 530 million. The Ardonagh Group claims to be the U.K.’s largest independent insurance distribution platform and a top 20 broker globally. The Ardonagh Group grew significantly through a series of acquisitions in 2018 that brings together the leading insurance brokerage brands in the U.K. including Autonet, Bishopsgate, Carole Nash, Geo Underwriting, Price Forbes, Swinton, Towergate, and URIS.
The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in the first half of 2022.
Advisors
Fenchurch Advisory Partners is acting as the exclusive financial advisor to Ardonagh Group.
In June 2020, direct lending funds managed by Ares Management Corporation was the lead arranger of US$ 1.875 billion financing commitment to The Ardonagh Group. Other lenders in that tranche include Caisse de dépôt et placement du Québec (CDPQ), HPS, and KKR.