Insurance firm Acrisure has entered into a definitive agreement to issue new convertible senior preferred stock in a US$2.1 billion capital raise, with Bain Capital leading the investment round. The funds are expected to be used to refinance part of the company’s existing non-convertible preferred stock, support strategic mergers and acquisitions, and further develop its technology-driven financial services platform.
Key Details of the Capital Raise
The financing round includes participation from several prominent investors, including Bain Capital Special Situations, Fidelity Management & Research Company, Apollo Funds, Gallatin Point Capital, and BDT & MSD Partners. Notably, BDT & MSD remains Acrisure’s largest minority shareholder through affiliated funds. The transaction values Acrisure at US$32 billion, representing a significant increase of nearly 40% from its last institutional capital raise three years ago.
Strategic Plans for Growth
Acrisure plans to use the capital injection to consolidate its platform, developed through approximately 900 acquisitions, while aiming to grow organically. The company’s current portfolio includes services in real estate, cybersecurity, payroll and payments, and retirement and wealth solutions. Greg Williams, Acrisure’s chairman, CEO, and co-founder, described the transaction as a key development in the firm’s platform strategy, expressing gratitude for the financial support and validation from investors.
Recent Leadership Appointments
The company has recently added senior leadership as part of its growth plans, including the appointment of Mark Wassersug, former COO of Intercontinental Exchange, as chief technology officer, and Shawn Pelsinger, previously global head of corporate development at Palantir Technologies, as chief administrative officer. These strategic appointments align with Acrisure’s broader strategy to position itself as a fintech solutions provider targeting small- and medium-sized enterprises in both domestic and international markets.
Bain Capital’s Recent Insurance Sector Investments
This significant investment in Acrisure is part of Bain Capital’s ongoing activity in the insurance sector. In April, Bain Capital agreed to sell UK-based insurer Esure to Belgian company Ageas for £1.3 billion. Earlier this year, Bain Capital also invested US$825 million to acquire a 9.9% stake in Lincoln Financial Group, as part of a strategic partnership that includes a 10-year investment management agreement.
