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PCF completes MBO valuing company at $2.2bn

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Utah-based retail broker PCF has completed a management buyout from previous investor HGGC that values the business at $2.2bn.

The transaction included financing of $1bn and involved partner investor Owl Rock, with support from advisory firm Sica Fletcher.

HGGC invested in PCF in 2020 and will retain a minority stake in the business.

The private equity firm’s other insurance holdings include London-based Specialist Risk Group. It also previously owned Davies Group.

PCF deals in commercial and personal lines, as well as employee benefits, and serves 220,000 customers.

Since HGGC’s investment in 2020, PCF has completed more than 100 M&A deals and expects to finish the year with $400mn in revenue and more than 1,700 employees.

PCF founder Peter Foy said: “This transaction marks a tremendous milestone for the business and, more importantly, our partners."

“We evaluated several avenues which could support the pace at which we are seeking to grow, with this option providing the unique ability to control our destiny driven solely by doing what is best for our partners.”

Owl Rock managing director Lukas Spiss said: “We are pleased to offer a flexible capital solution that leverages our investment expertise in private markets which can position PCF for sustainable long-term growth.

“We look forward to continue working with Peter and HGGC over the coming years and are excited for what we can accomplish together.”

HGGC partner John Block said: “HGGC has been extremely proud of and impressed by the pace of growth PCF has demonstrated since our partnership, and we are excited to continue to support Peter and his team as PCF continues to grow as an important and influential player in the US insurance landscape.”

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