KKR and Onex have announced that Onex Partners will acquire Integrated Specialty Coverages (ISC), a technology-driven insurance platform that designs, underwrites, and distributes specialized insurance products. As part of the deal, all ISC employees will receive significant cash payouts based on their ownership stakes in the company.
KKR first invested in ISC in 2021, helping the business grow into a leading player in its sector. This growth was fueled by targeted investments in technology and data, the expansion of both specialty retail and wholesale capabilities, and the creation of ISC’s first national sales and marketing team.
During its partnership with KKR, ISC developed a strong ownership-oriented culture that delivered measurable improvements across the organization. Employee engagement scores rose from the 76th to the 91st percentile in Gallup assessments. The company achieved top-decile performance on the Ownership Works index, with employee ownership sentiment increasing by 23 percent. Voluntary employee turnover dropped by half since 2022. Workforce development initiatives, including training programs, seminars, and employee-led committees supported these results.
When the deal closes, all of ISC’s nearly 400 employees will receive cash payouts, with amounts ranging from the equivalent of three months’ pay to more than two years’ salary, depending on how long they have been with the company.
KKR has been promoting broad-based employee ownership across its portfolio since 2011, starting with its U.S. Industrials private equity team and later expanding the approach to all control investments in its Americas Private Equity business. So far, 71 KKR portfolio companies have granted billions of dollars in equity to nearly 180,000 employees outside of senior management. This latest transaction continues that tradition while marking a new chapter for ISC under Onex’s ownership.
Advisors: KKR and ISC were advised by Morgan Stanley as lead financial advisor and Kirkland & Ellis as legal advisor on the transaction.
KEY QUOTES:
“It’s been an extraordinary journey partnering with ISC’s employees and leadership team, including Founder & CEO Matt Grossberg, who has been instrumental in bringing ownership culture to life and shepherding the company’s next era of growth and innovation. Together, we’ve significantly expanded ISC’s market presence, enhanced its product offerings, and accelerated its mission to transform the underwriting and operation of complex insurance programs, creating a best-in-class network that supports the entire insurance ecosystem. This transaction represents a terrific result for ISC’s employee-owners and our investors in KKR’s Americas XII Fund, underscoring our commitment to serving as a catalyst for growth and value creation.”
Chris Harrington, Partner at KKR
“The ownership mindset fundamentally transformed our organization at every level, cultivating an exceptional workforce of true stakeholders. This powerful shift inspired our team of owners to approach their responsibilities with heightened purpose and commitment, knowing they play a firsthand role in the company’s success. This alignment of individual and organizational interest has been vital to our achievements during our strategic partnership with KKR. We look forward to our next chapter in partnership with Onex.”
Matt Grossberg, Founder and CEO of ISC
“We are thrilled to be partnering with Matt Grossberg and all of ISC’s employee-owners in this next phase of the Company’s growth. ISC operates in a market sector that we understand very well, and we see tremendous opportunities to leverage our industry experience and network to help drive value creation. Alignment of interests between all stakeholders is a cornerstone of Onex Partners’ investing philosophy, and we look forward to continuing ISC’s highly successful employee ownership program.”
Adam Cobourn, a Managing Director at Onex Partners
“ISC exemplifies the power of ownership cultures in creating value for both employees and companies. The proof is in the data, which shows that over the last three years, ISC’s ownership culture and engagement scores have risen from the 60s and 70s respectively to the top decile in both, while the quit rate was more than halved from 18% to 6%. ISC will be in great hands with Onex, which shares our commitment to ownership and will continue an employee ownership program at the Company following the close of the transaction.”
Pete Stavros, Co-Head of Americas Private Equity at KKR and Founder of the nonprofit Ownership Works
