California-based private equity firm HGGC, the majority investor in London-headquartered insurance services provider Davies Group, is acquiring UK insurance broker Specialist Risk Group (SRG) for an undisclosed sum.
“The team at SRG has a unique and impressive set of insurance distribution capabilities,” said HGGC partner Neil White when the definitive agreement was announced. “We are thrilled to pair our industry knowledge with their expertise to help grow SRG organically and through acquisition.”
Expected to close in the first quarter of 2021, the private transaction will see the exit of existing SRG investor Pollen Street Capital. Meanwhile the management team at SRG will continue to hold a significant stake in the business by investing alongside HGGC.
Commenting on the deal, Pollen Street Capital partner Ian Gascoigne noted: “SRG has been an outstanding investment and a great example of Pollen Street’s track record of investing in high-growth specialists in the financial and business services sectors.
“We have enjoyed a great partnership with Warren [Downey] and the team and believe that HGGC is a great partner to support the business to achieve its considerable potential.”
Downey (pictured), group chief executive at SRG, described HGGC as “completely aligned” with the broker’s values as a culture- and people-driven company.
“We share a common ethos and expansive ambition, and I am tremendously excited for the next chapter of the SRG story,” stated the group CEO. “I would like to thank the team at Pollen Street for their support of the business through this foundational stage of SRG’s history.”
An integrated group of insurance intermediaries arranging specialist insurance for corporates operating in the UK and internationally, SRG serves more than 18,000 end policyholders across multiple lines of business. SRG units include Miles Smith and The Underwriting Exchange.
