KKR Invests Additional $1 Billion in USI to Become Largest Shareholder

USI Insurance Services said Monday that KKR is making a new equity investment of more than $1 billion to become USI’s largest shareholder.

Private equity firm KKR and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) in 2017 agreed to buy brokerage USI Insurance Services from Onex Corp. in a $4.3 billion deal.

Under the terms of a new agreement – expected to be completed by the end of 2023 – KKR and Valhalla, New York-based USI will buy shares of the company held by CDPQ and other investors. Over 50% of CDPQ’s shares will be bought in the transaction, USI 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,” said Michael Sicard, chairman and CEO of USI, in a statement. “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.”

USI said its size has doubled to over 10,000 team members across more than 200 offices, and its management and employees will retain their significant ownership in the company going forward.

“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,” added Chris Harrington, partner at KKR. “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.”

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