BroadStreet Partners, a leading North American insurance brokerage company, announced that an investor group led by Ethos Capital, British Columbia Investment Management Corporation (BCI), and White Mountains Insurance Group will acquire an ownership position in BroadStreet. Under the terms of the deal, Ontario Teachers’ Pension Plan will maintain a significant co-control stake and operate in partnership with the Ethos-led investor group.
What BroadStreet does: BroadStreet is a leading middle-market insurance brokerage focused on commercial and personal property & casualty and employee benefits. BroadStreet partners with leading independent insurance agencies, known as Core Agency Partners. Complementing its M&A capabilities and capital solutions, the company also provides a vast network of market resources, tools, and expertise to its Core Agency Partners, working alongside them to drive organic growth and improve agency performance.
BroadStreet is unique in the market since it has a co-ownership model with more than 800 colleagues that own equity in their local Core Agencies. This co-ownership approach creates focused alignment between BroadStreet and its Core Agency Partners around growth and value creation. The partnership with Ethos and its co-investors will also support BroadStreet’s long-term plans like its continued investment in technology and digital transformation.
Ethos Capital invests in seasoned companies such as BroadStreet, with proven business models and management teams, which are ready for accelerated growth, sustainable long-term value creation, and enhanced performance. And the firm’s unique Executive Partner model pairs experienced investors and industry practitioners with the leaders of its portfolio companies, partnering in their growth.
Ontario Teachers’ bought a majority stake in BroadStreet in 2012 and it has taken an active role in supporting the organization’s growth. Under its ownership, BroadStreet has scaled the business and become one of the top private brokerages in North America, with a presence in all 50 U.S. states and all 10 Canadian provinces.
Advisors: Ardea Partners served as lead financial advisor to Ontario Teachers’ and BroadStreet, and RBC Capital Markets and BMO Capital Markets served as co-advisors. Latham & Watkins and Torys served as legal counsel to Ontario Teachers’ and BroadStreet. Kirkland & Ellis served as legal counsel to Ethos Capital. Debevoise & Plimpton served as legal counsel to BCI. Cravath, Swaine & Moore served as legal counsel to White Mountains.
KEY QUOTES:
“BroadStreet is uniquely positioned as the partner of choice for successful entrepreneurs seeking new avenues for growth. Our differentiated co-ownership model and proven strategy empower our 30 Core Agency Partners to scale their businesses with confidence. For over a decade, the Ontario Teachers’ team has been a value-added partner to us. We are excited to continue this collaboration and now join forces with Ethos, BCI, and White Mountains, leveraging their collective expertise to enhance our capabilities and drive sustained growth.”
– Mike O’Connor, Chief Executive Officer, BroadStreet
“We are proud of the tremendous growth that we have achieved on our journey over the last dozen years with the support of Ontario Teachers’. We now look forward to continuing and strengthening that partnership with the addition of the new Ethos-led investor group. We see tremendous value in being able to tap into the combined expertise of the Ontario Teachers’ and Ethos-led teams to the benefit of our Core Agency leaders. By coming together, BroadStreet is taking a significant step forward on our mission to become the preferred home for premier insurance agencies in North America.”
– Rick Miley, Founder and Board Member, BroadStreet
“BroadStreet has developed a highly differentiated business model – consistently building its expertise and scale through its industry network and a growing set of Core Agency Partners. Our Ethos leadership team and co-investors have significant experience in accelerating growth and long-term value creation for high-performance companies including in the insurance sector. We look forward to partnering with an executive of Mike’s caliber and his team to pursue their future growth ambitions.”
– Brent Stone, Managing Partner, Ethos Capital
“BroadStreet has experienced tremendous growth as a result of its unique co-ownership model and strong management team. As we continue to focus on creating long-term value at BroadStreet, we are delighted to bring in like-minded partners with a proven track record in the insurance industry. Ethos and its co-investors share our vision of growing BroadStreet into the premier insurance brokerage company in North America by capitalizing on sectoral tailwinds and accelerating both organic and inorganic growth efforts.”
– Jeff Markusson, Senior Managing Director, Private Capital, Ontario Teachers’ and BroadStreet Board Member
