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Acrisure, a Grand Rapids, Mich.-based insurance broker, has announced the closing of two transactions, which the company says represents a significant capital raise and validation of the company’s tech-enabled value proposition.

BDT Capital Partners (Chicago), a merchant bank that provides family and founder-led businesses with long-term, differentiated capital, led a $3 billion investment, through its affiliated investment funds, into Acrisure’s Senior Preferred Stock, the broker reports. This investment has aligned the capital structure to support the company’s long-term objectives and further supports Acrisure to continue its trajectory as the industry’s fastest-growing broker, the Acrisure announcement says.

A consortium of investors, which Acrisure says were attracted by its broad tech-enabled vision and recent acquisition of Tulco’s insurance business, has invested $454 million of new capital in Junior Preferred Stock.

“These transactions are a clear reflection of how the market is valuing both the strength of our existing insurance brokerage business and, importantly, our vision for accelerating our technology initiatives going forward,” comments Greg Williams, Co-Founder, President and CEO, Acrisure. “These investments enable us to pursue strategic initiatives with aligned capital that will provide greater value for all shareholders.”

Acrisure contexualizes the capital raise within the context of the firm’s successful navigation of the challenges Covid-19 pandemic, which it said it achieved by relying on the strengths of its partnership model and culture. Acrisure reports being able to maintain an industry-leading acquisition pace during 2020, acquiring 110 agencies, while also reducing its net debt leverage.

“Acrisure is an innovative leader in an attractive industry with a very strong management team led by Co-Founder Greg Williams,” comments Byron Trott, Founder, Chairman and CEO, BDT Capital Partners. “We look forward to a long-term partnership with Greg and his team, consistent with our business model of providing patient capital to founder and family-led businesses, while leveraging our network of closely held business owners and investors to support the company’s growth and expansion.”

Next-Generation Distribution Model

Acrisure purports to be forming the next-generation distribution model by combining its financial strength, expertise and one of the largest data sets of any insurance broker with state-of-the-art technology and the entrepreneurial energy of a startup business.

“Based on our data, AI foundation, and global distribution capabilities, we will accelerate our growth in the insurance brokerage industry and into adjacent opportunities,” adds Williams.

A portion of the proceeds from today’s announced investments was used to repurchase in full Acrisure’s existing Senior Preferred Stock and certain warrants.

J.P. Morgan served as placement agent to Acrisure on the Junior Preferred Stock Offering.

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