Hub International Limited has announced a $1.6 billion minority equity investment, bringing its enterprise valuation to $29 billion. This marks the highest valuation to date for a private insurance brokerage. The funding round was led by funds and accounts managed by T. Rowe Price Investment Management, Inc., Alpha Wave Global, and Temasek. Both new and existing investors participated in the round.
Decade of Growth and Strategic Investment
The new valuation is the latest in a series of increases reflecting Hub’s strategic growth over the past decade. Since 2013, when Hellman & Friedman (H&F) first invested in the company at a $4.4 billion valuation, Hub has consistently grown its enterprise value. Altas Partners’ 2018 minority investment coincided with a $10 billion valuation, followed by a $23 billion valuation in 2023 with Leonard Green & Partners (LGP). During the same timeframe, Hub’s annual revenue rose from $1.1 billion to $4.8 billion as of 2024.
Role of Acquisitions in Expansion
A significant contributor to this growth has been Hub’s acquisition strategy. In just the past month, the company has added multiple firms to its portfolio. These include:
- DeMarie Insurance: A Florida-based agency with expertise in coastal property and small business insurance.
- Guru of Insurance: A Texas-based digital insurance agency focused on online distribution.
- AGP: A Midwest commercial lines brokerage with a strong regional footprint.
These acquisitions align with Hub’s strategy of expanding through targeted purchases that enhance specialization and regional presence.
Utilization of Funds and Shareholder Structure
Proceeds from the investment will support continued mergers and acquisitions, debt reduction, and other corporate initiatives. These initiatives are part of Hub’s Liquid Private Placement (LPP) program, launched in 2023 with LGP’s involvement. The LPP provides liquidity for institutional shareholders without requiring secondary sales. In this latest round, limited share sales indicate the majority of funds will be directed toward growth initiatives.
Hub’s ownership structure remains unchanged. H&F retains a controlling interest, while Altas Partners and LGP maintain their minority stakes and board representation. Hub’s management team also holds a substantial equity interest.
Advisory and Legal Support
Morgan Stanley and Goldman Sachs served as financial advisors on the transaction, which is expected to close by the end of May 2025. Simpson Thacher & Bartlett LLP provided legal counsel.
About Hub International
Founded in Chicago, Hub International is recognized as the fifth-largest insurance broker globally. The firm focuses on serving middle-market clients and has built a reputation for industry specialization, risk management solutions, and strategic growth through innovation and acquisitions.
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