Institutional investor Caisse de dépôt et placement du Québec (CDPQ) has agreed to acquire a significant minority stake in
Hyperion Insurance Group.
The international insurance group Hyperion is composed of broking divisions
Howden and RKH, as well as underwriting division
DUAL. The group operates across Europe, Asia, the Middle East, Latin America, the US, Australia, and New Zealand, with over 3,800 employees in 37 countries.
A release revealed that CDPQ will invest over US$400 million to provide the Group with new growth equity and liquidity to existing shareholders. The investment also allows CDPQ to join Hyperion as a “long-term growth partner” alongside General Atlantic (GA).
Hyperion management and employees will remain the largest shareholder group, following the investment.
“CDPQ is a fantastic partner to support us on the next leg of our journey,” commented Hyperion CEO David Howden. “Their strategy to invest based on long term fundamentals combined with their deep understanding of insurance markets and significant international portfolio, mean they will deliver valuable insight to help direct our future plans, whilst remaining supportive of our independence and of our resolute focus on putting our clients at the centre of everything we do.”
“Since General Atlantic’s initial investment in 2013, the Group’s revenue has grown by almost five times, our EBITDA has increased from £36m to over £150m, and we have created very significant value for all of our shareholders,” Howden added. “GA has been more than just an investor, it has been an active and collaborative growth partner whose intellectual capital, significant technological expertise, global resources and experience have played a central role in our success over the past four years, and I am delighted that they will continue to do so.”
“We are pleased to partner alongside David Howden, his management team and General Atlantic to continue Hyperion’s track record of success,” said CDPQ executive vice-president and head of private equity Stephane Etroy. “Hyperion has a very strong entrepreneurial culture that has consistently yielded superior organic growth. This transaction allows us to support the Group in its global growth strategy while at the same time benefiting from a stable and counter-cyclical industry, together with a high-quality partner who shares our long-term vision.”
“Over the last four years we have enjoyed a strong working relationship with Hyperion over a period in which the Group has delivered market-leading organic growth, a transformational merger with RKH, and significantly invested in embracing technology and transforming its operational platform,” stated GA managing director and co-head of EMEA John Bernstein. “This unique group has a bright future and we look forward to working with CDPQ and Hyperion as it continues its rapid growth in the provision of leading insurance services to its customers globally.”
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