Hub raises $1.6 billion
HUB International entered into a definitive agreement for a minority common equity investment of approximately $1.6 billion, which values the broker at $29 billion. The investment is being led by funds and accounts advised by T. Rowe Price Investment Management, Alpha Wave Global, and Temasek, with participation from other new and existing investors.
Hub’s valuation has increased from $4.4 billion in 2013 when Hellman & Friedman initially invested in the company, to $10 billion in 2018 when Altas Partners acquired a minority stake, to $23 billion in 2023 when Leonard Green & Partners, L.P. announced its minority investment, to today’s $29 billion valuation – the largest enterprise value to date for a private insurance broker. The increased valuation is underpinned by more than a fourfold increase in Hub’s annual revenue during this period, from $1.1 billion in 2013 to $4.8 billion in 2024.
This transaction is the next chapter in Hub’s commitment to make regular liquidity available to existing shareholders via an innovative Liquid Private Placement implemented in connection with LGP’s 2023 investment. Existing institutional shareholders were provided the option to pursue liquidity in connection with this transaction. Lack of selling appetite allowed the investment proceeds to provide primary capital for growth initiatives and other general corporate purposes, such as acquisitions, debt repayments, and maintaining excess cash on Hub’s balance sheet.
H&F will retain a controlling interest in Hub, while the company’s management team will continue to hold a significant equity position. Altas and LGP will remain significant minority shareholders and will continue to be represented on Hub’s board of directors. The company does not expect to use the investment proceeds to fund secondary redemptions from existing equity holders.
“HUB’s unparalleled middle market experience over the past 25+ years delivering industry and product specialization and risk management solutions brings a significant differentiation and level of expertise to our clients. Our ongoing investments in innovation, proprietary products, and strategic M&A, along with our commitment to learning and development, has led to consistent performance and strength in our organic growth and new business generation.” – Marc Cohen, Chairman and CEO, HUB International.
“Our long-term relationship with HUB speaks volumes of the caliber of the organization. As the fifth largest broker in the world and a leader in servicing the middle market, they’ve displayed a level of focus that has and continues to drive significant growth.” – Hunter Philbrick, Partner at Hellman & Friedman.
