Goldman Sachs Asset Management to invest in World Insurance Associates
Insurance broker World Insurance Associates has entered into a definitive agreement with Goldman Sachs Asset Management regarding a ~$1 billion investment made up of equity and debt.
Goldman Sachs will join Charlesbank Capital Partners, which first invested in World in April 2020, as co-lead equity investors for World’s next chapter of growth. In addition to its equity investment alongside Charlesbank, Goldman Sachs is concurrently leading a “significant” subordinated debt financing that will support continued acceleration of World’s acquisition strategy and organic expansion. Across both investments, Goldman Sachs will be investing more than $1 billion into World, which currently has a total enterprise valuation of approximately $3.4 billion. World’s management team and employee shareholders will remain major investors alongside Charlesbank and Goldman Sachs.
The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions and regulatory approvals.
Since its founding in 2011, and accelerated by Charlesbank’s original investment three years ago, World has become a diversified, national brokerage platform with more than $500 million in revenue across three leading and complementary business lines of retail insurance, wholesale insurance, and retirement/wealth advisory. The company has more than 2,000 employees in 260 offices across the US, serving over 300k clients.
“We are extremely excited to have a leading global financial institution like Goldman Sachs join Charlesbank at this juncture in our partnership. The major investment Goldman Sachs is making in World will be an accelerant for us, and we intend to take full advantage of it. As we continue to aggressively execute our growth plan, this is momentous affirmation that our unique, integrated business model is working.” – Rich Eknoian, World’s CEO and founder.
“Rich and his team have done a fantastic job growing World over the past few years, creating a leading and integrated platform with a broad set of attractive client offerings. We believe our investment and access to both the insurance and wealth management capabilities within Goldman Sachs can help propel the company over the years ahead.” – Anthony Arnold, managing director in Private Equity at Goldman Sachs Asset Management.
