This week’s edition was a reader request—thanks for the suggestion. If there’s a topic you’d like me to cover, drop me a note at [email protected]
PE Playbook: Insurance Brokers
State of Play
For the past two decades, insurance brokerage has been one of private equity’s favorite playgrounds. The space checks all the boxes: fragmented, capital-light, recession-resistant, and built on recurring commissions.
And 2024 wrapped up with a high note for private equity investors. In December 2024, GTCR successfully sold their investment in AssuredPartners to Arthur J. Gallagher & Co. (NYSE: AJG), a publicly traded insurance broker, for a whopping $13.5 billion.
Let’s break down the broker model, what makes the sector so attractive to PE, and how the AssuredPartners case study illustrates the broader playbook.