Acrisure valued at $32 billion in funding round led by Bain Capital

(Reuters) — Acrisure has raised $2.1 billion from Bain Capital and other investors, its CEO told Reuters on Tuesday, valuing the firm at $32 billion and allowing it to fund an expansion into products beyond its core insurance brokerage business.

The Grand Rapids, Michigan-based company was founded in 2005 as an insurance broker but has in recent years added payroll, cybersecurity and employee benefits.

“This capital raise reflects how (the investors) are not investing in this business, at this point in time, and at this valuation, because we are just an insurance broker,” CEO and co-founder Greg Williams said in an interview.

The valuation is roughly 40% above the level achieved at Acrisure’s previous raise three years ago.

The capital raise, structured as new convertible senior preferred stock, is being led by Bain’s special situations arm. Other investors include merchant bank BDT & MSD Partners, which remains the largest minority shareholder, as well as Fidelity Management & Research Co., Apollo Funds and Gallatin Point Capital.

The capital will be used to enhance Acrisure’s products and services, including funding acquisitions to further its non-insurance capabilities. Mr. Williams said a portion of the cash will refinance an existing convertible preferred instrument, simplifying the company’s capital structure.

Acrisure remains majority-owned by its employees, of whom there are more than 19,000 in 23 countries.

The company has previously toyed with pursuing a stock market listing. Mr. Williams said the latest capital raise keeps open Acrisure’s options of remaining a private company or becoming a publicly listed firm in the future.

The insurance brokerage industry, along with other non-discretionary services Acrisure offers, is generally resilient to economic uncertainty. This makes Acrisure confident of continued growth, Williams said, adding the company now generates revenue of around $5 billion annually.

“This is a great time to invest in a business which produces consistent revenue, such as Acrisure, in light of the heightened macro volatility,” Cristian Jitianu, partner at Bain Capital, said in an interview.