HGGC swoops for Specialist Danger Group
California-based private equity firm HGGC, the majority investor in London-based insurance services company Davies Group, is acquiring UK insurance broker Specialist Risk Group (SRG) at an undisclosed price.
“The SRG team has unique and impressive insurance distribution capabilities,” said HGGC partner Neil White when the final agreement was announced. “We look forward to combining our industry knowledge with your specialist knowledge in order to support SRG’s growth organically and through acquisitions.”
The private transaction is expected to close in the first quarter of 2021 and leave the existing SRG investor Pollen Street Capital. In the meantime, SRG’s management team will continue to have a significant stake in the business by investing alongside HGGC.
Commenting on the deal, Ian Gascoigne, Partner at Pollen Street Capital, said: “SRG was an outstanding investment and an excellent example of Pollen Street’s track record in investing in high growth specialists in the financial and corporate services sectors.
“We have a great partnership with Warren [Downey] and the team, and believe that HGGC is a great partner to help the company achieve its considerable potential. “
Downey (pictured), Group Chief Executive at SRG, described HGGC as “fully aligned with the broker’s values” as a culture- and people-driven company.
“We share a common ethos and an expansive ambition and I am very much looking forward to the next chapter in SRG history,” said the group’s CEO. “I would like to thank the team on Pollen Street for supporting the business at this fundamental stage in SRG’s history.”
As an integrated group of insurance intermediaries who take out specialty insurance for companies operating in the UK and internationally, SRG serves more than 18,000 final policyholders in various business areas. The SRG units include Miles Smith and The Underwriting Exchange.