Dragoneer, Genstar, SkyKnight Buy $1bn Equity in Amwins from Employees

Amwins Group, Inc. (“Amwins”), the largest P&C wholesale broker and global distributor of specialty insurance products and services in the U.S., announced the completion of a significant recapitalization transaction with its existing shareholder group.

In connection with the transaction, Dragoneer Investment Group (“Dragoneer”), Genstar Capital (“Genstar”), SkyKnight Capital, L.P. (“SkyKnight”) and employee shareholders (together, the “Investors”), purchased $1.0bn in equity from more than 375 Amwins employee shareholders and Public Sector Pension Investment Board (“PSP”). PSP rolled 80% of their equity position forward. After the completion of the recapitalization transaction, the employee shareholder group will remain the largest single ownership group with approximately 40% ownership of Amwins.

The transaction marks a continuation of Amwins’ philosophy of long-term employee and institutional ownership allowing for unique perpetuation of the company and ample liquidity opportunities for employee and institutional investors – all without the need for outside capital-raising efforts.

“We were intentional in building a long-term capital structure with our current institutional investors and are excited to have this strategic group continue as our partners. As a private company, we believe in providing our shareholder base periodic opportunities for liquidity. Through the combination of dividends and sale opportunities, we have provided our shareholders with over $4.1bn in liquidity since 2018,” said Scott Purviance, Chief Executive Officer of Amwins. “Having an existing shareholder base looking to increase their investment speaks to the stability and growth prospects for our business. Our shareholders’ long-term investment mindset uniquely positions us to focus on our clients and enhances our ability to execute our 150-year vision.”

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“At Dragoneer, we’re focused on investing in exceptional companies run by great teams, so we are thrilled to increase our stake in Amwins, further solidifying our long-term partnership of almost a decade. Amwins’ best-in-class service and outstanding employee culture continue to differentiate the business, which is well positioned to continue its history of growth and success,” said Marc Stad, founder and Managing Partner of Dragoneer, Amwins’ largest institutional investor.

“This is a win-win transaction for everyone involved, and we have enjoyed working alongside the management team and our shareholder partners to accomplish this liquidity event. Amwins’ all common equity capital structure is a unifying and aligned approach to institutional and employee ownership,” said Ryan Clark, President and Managing Partner of Genstar.

“We have been partners with Amwins since 2016, and the long-term thoughtful approach to capital structure planning and liquidity aligns with Amwins’ business and operational philosophies. We are excited to continue the journey alongside them,” said Matt Ebbel, Managing Partner of SkyKnight.

Source: CISION PR NEWSWIRE

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