Hub – a leading global insurance brokerage and financial services firm – announced that it has entered into a definitive agreement for a minority common equity investment of approximately $1.6 billion. The funding is being led by funds and accounts advised by T. Rowe Price Investment Management, Alpha Wave Global, and Temasek, with participation from other new and existing investors. And this funding values Hub at a total enterprise valuation of $29 billion.
Hub’s valuation has increased from $4.4 billion in 2013 when Hellman & Friedman (H&F) initially invested in the company, to $10 billion in 2018 when Altas Partners (Altas) acquired a minority stake, to $23 billion in 2023 when Leonard Green & Partners, L.P. (LGP) announced its minority investment, to today’s $29 billion valuation – which is the most significant enterprise value to date for a private insurance broker. And the increased valuation is supported by over a fourfold increase in Hub’s annual revenue during this period, from $1.1 billion in 2013 to $4.8 billion in 2024.
These recurring investments reflect continued investor confidence in Hub’s scale, profitability, organic revenue growth, and maintained focus on middle and upper middle market clients. And HUB’s consistent organic growth is supported by industry-leading net new business performance, ongoing focus on cross-selling, seamless M&A integration, new distribution channels and digital solutions, and talent acquisition.
H&F will retain a controlling interest in HUB, while the company’s management team will also continue to hold a significant equity position. And Altas and LGP will remain significant minority shareholders and will continue to be represented on HUB’s board of directors. The company does not expect to use the investment proceeds to fund secondary redemptions from existing equity holders.
Advisors/Counsel: Morgan Stanley Smith Barney and Goldman Sachs served as financial advisors to HUB and Simpson Thacher & Bartlett served as legal counsel to HUB. And the deal is expected to be completed by the end of May 2025. Morgan Stanley previously served as exclusive financial advisor and Simpson Thacher & Bartlett served as legal counsel to HUB in connection with LGP’s 2023 investment.
KEY QUOTES:
“HUB’s unparalleled middle market experience over the past 25+ years delivering industry and product specialization and risk management solutions brings a significant differentiation and level of expertise to our clients. Our ongoing investments in innovation, proprietary products, and strategic M&A, along with our commitment to learning and development, has led to consistent performance and strength in our organic growth and new business generation.”
Marc Cohen, Chairman and CEO, HUB International
“Our long-term relationship with HUB speaks volumes of the caliber of the organization. As the fifth largest broker in the world and a leader in servicing the middle market, they’ve displayed a level of focus that has and continues to drive significant growth.”
Hunter Philbrick, Partner at Hellman & Friedman
