Baldwin Group Announces $110 Million Financing for Launch of BRIE
The Baldwin Group has secured $110 million in surplus financing to support the launch of its new reciprocal insurance exchange, Builder Reciprocal Insurance Exchange (BRIE). The funding, secured through a note purchase agreement, is a crucial development in Baldwin’s strategy to integrate third-party risk capital solutions.
The financing will be issued through surplus debentures. Of the total, $95 million will be provided by an affiliate of Gallatin Point Capital LLC, with the remaining $15 million coming from Baldwin affiliates. The transaction is slated to close in the second quarter of 2025, pending regulatory approvals and standard closing conditions.
Baldwin Group CEO Trevor Baldwin highlighted the significance of the agreement.
“Launching BRIE represents a meaningful milestone in our continued journey to vertically integrate across the value chain and bring innovative, third-party risk capital solutions to market in support of more efficient risk transfer outcomes for our clients,” Baldwin said.
Matthew Botein, co-founder and managing partner of Gallatin Point, noted the potential of the partnership.
“Baldwin’s growth over the past decade has been remarkable, and we are excited to be able to support them through our capital investment as they continue to create innovative insurance solutions for their clients and further grow their builder-sourced homeowners book of business,” Botein said.
BRIE aims to provide capacity for Baldwin’s builder-sourced homeowners insurance business and will support its affiliated managing general agency (MSI) as it transitions from its current carrier partner. MSI has met all requirements to extend its existing Program Administration Agreement, allowing their carrier partner to continue supporting the business during the transition. An affiliate of Baldwin will serve as the attorney-in-fact for BRIE. Baldwin does not anticipate consolidating BRIE’s or the AIF’s financial results, meaning the notes will not be considered additional debt for Baldwin or its affiliates.
Insurance Advisory Partners LLC served as the exclusive financial advisor to Baldwin and placement agent for the notes. Troutman Pepper Locke LLP acted as legal counsel to Baldwin, while Morgan, Lewis & Bockius LLP represented Gallatin Point in the transaction.
Financial Performance
In February 2025, The Baldwin Group achieved an adjusted EBITDA of $312.5 million, reflecting a 25% increase year-over-year, with adjusted net income reaching $176.9 million. Revenue also increased, reaching $1.4 billion, a 14% increase compared to the prior year.
“We saw continued momentum across our business with organic growth of 19% for the fourth quarter, 17% for the full year, and double digits across all three of our segments showcasing the strength of our colleague and client franchise,” said CEO Trevor Baldwin.
