Acrisure, a financial services firm based in Grand Rapids, Michigan, has raised $2.1 billion in a funding round led by Bain Capital's special situations arm. The round places the company's valuation at $32 billion, which represents a 40 percent increase from its previous funding round three years ago.
Established in 2005 as an insurance brokerage, Acrisure has expanded its scope over the years to offer a range of services beyond insurance. These include payroll, cybersecurity, and employee benefits, primarily aimed at small and medium-sized businesses. The company emphasizes its strategy of providing a tech-enabled suite of financial services designed to serve as a comprehensive solution for its clients.
The funding was structured as convertible senior preferred stock. Alongside Bain Capital, other participants in the round include BDT & MSD Partners, Fidelity Management & Research Company, Apollo Funds, and Gallatin Point Capital. BDT & MSD Partners remains the largest minority shareholder.
According to CEO and co-founder Greg Williams, the capital will be used to enhance Acrisure's product offerings and to support acquisitions that expand the company's non-insurance capabilities. He noted that several acquisitions are expected to be announced soon, although he did not provide details. Additionally, a portion of the funds will be used to refinance an existing convertible preferred instrument in order to simplify the company's capital structure.
Acrisure continues to be majority-owned by its employees, with a workforce of over 19,000 people across 23 countries. While the company has considered going public in the past, Williams stated that the new funding round leaves open the option to either remain private or pursue a public listing in the future.
The firm currently generates approximately $5 billion in annual revenue and is aiming for an annual growth rate of 15 percent. Williams pointed out that the company's core business and additional services are generally resilient to economic uncertainty, making Acrisure optimistic about continued growth.
Cristian Jitianu, a partner at Bain Capital, described the timing of the investment as strategic, highlighting Acrisure's consistent revenue in an environment of heightened macroeconomic volatility.