Hellman & Friedman is trying to elevate at the least $1 billion in fairness from buyers for Hub Worldwide Ltd., in a possible deal valuing the insurance coverage brokerage at $30 billion, in accordance with individuals accustomed to the matter.
The non-public fairness agency is working with Morgan Stanley and Goldman Sachs Group Inc. on the so-called liquid non-public placement, the individuals mentioned, asking to not be recognized discussing confidential data. The agency may find yourself elevating greater than $1 billion from a spread of buyers together with long-only establishments and restricted companions in non-public fairness funds, they mentioned.
Such transactions, generally known as non-public preliminary public choices, have been gaining traction as buyout companies look to carry onto their best-performing property for longer, whereas additionally permitting their restricted companions to money out.
Personal fairness companies are turning to extra modern options to generate liquidity for buyers as the general dealmaking atmosphere stays difficult. These offers assist buyout companies hold management of their portfolio corporations whereas additionally broadening the shareholder base and offering common liquidity home windows.
Hub’s valuation has grown considerably since H&F acquired the enterprise in 2013 at $4.4 billion valuation. In 2023, Hub raised $4.2 billion in its first liquid non-public placement led by Los Angeles-based Leonard Inexperienced & Companions, the individuals mentioned. That fundraising took the insurance coverage dealer’s valuation to $23 billion.
H&F plans to offer buyers on this newest placement a possibility to promote after 12 to 18 months, in accordance with the individuals. Deliberations are ongoing and particulars of the potential deal may nonetheless change, the individuals mentioned.
Learn Extra: Private Equity’s $3 Trillion Burden Sparks Hunt for Exit Options
Hub was fashioned in 1998 when various Canadian brokerages merged. The corporate has since made a number of acquisitions and expanded operations into the US. Chicago, Illinois-based Hub now has greater than 19,000 staff throughout North America and is ranked because the world’s fifth largest insurance coverage dealer, in accordance with its website.
H&F can also be mulling exit choices for an additional long-held funding because it’s interviewing banks for an inventory of Verisure, Bloomberg Information reported final week. A deal may worth the safety group at €25 billion to €28 billion, the individuals mentioned.
Representatives for H&F, Goldman Sachs and Morgan Stanley declined to remark.
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