Global insurance brokerage Hub International Limited (HUB) has completed a substantial minority investment from private equity firm Leonard Green & Partners (LGP) and other prominent institutional minority investors.
Morgan Stanley & Co. LLC served as exclusive financial advisor to HUB and Simpson Thacher & Bartlett LLP as legal counsel, and MarshBerry provided market research assistance. Meanwhile, Barclays acted as exclusive financial advisor and Latham & Watkins LLP served as legal counsel to LGP.
HUB announced the deal with LGP in April 2023, confirming that it expects to receive a substantial minority investment form funds managed by the firm.
The brokerage will use the investment to repurchase equity interests from existing equity holders.
HUB's valuation has grown fivefold over the last 10 years – from $4.4 billion in 2013 when Hellman & Friedman (H&F) initially invested to $10 billion in 2018 when Altas Partners (Altas) invested. In 2022, HUB reached $3.7 billion in annual revenue. Currently, it is valued at $23 billion.
Following the recent investments, LGP will join the HUB board, while Altas will remain a significant minority shareholder and member of the board. H&F will retain a controlling-interest in HUB, while the company's management team will continue to hold a significant equity position.