KKR increases investment in USI to become largest shareholder

Written by Dan McGrath

13/09/2023

KKR is making a new investment of over $1bn in USI Insurance Services and is set to become the largest single shareholder in the firm.

USI is one of the largest insurance brokerage and consulting firms in the US, working across a range of technology-enabled property and casualty, employee benefits, personal risk and retirement solutions.

Following its acquisition by KKR and CDPQ in 2017, USI has successfully executed a number of growth initiatives and acquisitions, extending its position in insurance brokerage and consulting.

The USI team has more than doubled in size since its acquisition six years ago, with more than 10,000 employees working in 200 offices.

Investment firm, KKR, offers alternative asset management as well as capital markets and insurance solutions. The additional commitment of over $1bn in USI is coming through its core investments strategy.

Under the agreement, KKR and USI will purchase shares in USI held by CDPQ and other investors. Over 50% of the shares held by CDPQ will be purchased in the transaction.

Chairman and CEO at USI, Michael Sicard, said: “When we embarked on our journey with KKR and CDPQ, we shared a vision about the forces impacting our industry and a plan for USI to be a leading innovator in that transformation, combining world-class sponsorship and investment with our team of experts, differentiated solutions and technology. The power of this strategic partnership has exceeded our expectations, and we are thrilled to be continuing our journey with the support of our long-term shareholders.”

Partner at KKR, Chris Harrington, added: “We are enormously proud of everything the USI team has accomplished and we have a high conviction in the opportunity ahead for this winning team and operating model as USI continues to innovate and scale.

“Together with CDPQ we have supported significant investments in USI’s platform and technology that position USI for long-term growth. We are pleased to reach this agreement to increase our ownership with a substantial investment of additional long-term capital.”

The deal is expected to be completed by the end of the year. Term transactions have not been disclosed.

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