SAN FRANCISCO, CA–Parthenon Capital, a San Francisco and Boston-based private equity firm, announced today a $432.5 million refinancing for its portfolio company AmWINS Group, Inc. (AmWINS), the nation’s largest and most diversified wholesale insurance broker. The Wachovia Securities led refinancing is associated with the acquisition of American Equity Underwriters, Inc. (AEU) and a $100 million dividend paid to all shareholders. The employee owners of AmWINS will continue to own over 30% of the firm. The acquisition of AEU, a national provider of insurance programs for maritime employers with a special expertise in United States Longshore and Harbor Workers Compensation (USL&H) insurance, will continue to diversify AMWINS’ product offering and capabilities for its retail customers.
A portion of Parthenon Capital’s AmWINS investment was made out of Parthenon Investors III, LP, its third investment fund that held a final closing on May 30, 2007 at approximately $700 million. Will Kessinger, Managing Partner of Parthenon Capital, noted “We have enjoyed our partnership with AmWINS and are very pleased to be returning capital to our investors within days of our fund’s final closing.” Eighty percent of Parthenon Capital’s most recent fund came from existing investors, including its top five investors who each increased their commitments.” Mr. Kessinger commented about the fund raising in general, “Our firm worked together during fundraising to successfully complete a generational transition from a founder-led organization to a partnership-centric model. We are very pleased with the outcome of the fund raise and with our firm’s strong combination of people, investors and strategy. We are very excited to welcome back our existing investors, who were incredibly supportive of our fund raising, as well as several new investors who joined our third fund.” MVision Private Equity Advisors acted as the placement agent for the capital raise.
“The AmWINS management team continues to do an outstanding job of building the preeminent wholesale insurance brokerage. The recapitalization creates a company with a very flexible balance sheet, thus allowing the executive team to continue to effectuate its organic and acquisition growth strategies for the foreseeable future,” said Brian Golson, Partner of Parthenon Capital.
About AmWINS Group, Inc.
AmWINS is a wholesale distributor of specialty insurance products dedicated to serving retail agents throughout the United States by providing property and casualty, group life and health, and program administration services. Based in Charlotte, NC, the company operates through more than 35 offices and handles total premium placements in excess of $2.8 billion dollars annually, ranking as the country’s largest wholesale insurance broker by Business Insurance magazine. For more information, visit www.amwins.com.
About Parthenon Capital
Parthenon Capital is a leading mid-market private equity firm based in Boston and San Francisco. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has particular expertise in business services, financial and insurance services and healthcare, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how. Parthenon’s 25 person investment team has deep experience in corporate strategy, capital markets and operations, enabling the firm to pursue complex, multi-faceted value creation opportunities. For more information, visit www.parthenoncapital.com.