World Insurance Associates, an insurance brokerage, and funds advised by Goldman Sachs Asset Management, through its private equity and hybrid capital teams, entered into a definitive agreement through which Goldman Sachs will make “a major investment” in World Insurance Associates.
Goldman Sachs will join Charlesbank Capital Partners, which first invested in World Insurance Associates in April 2020, as co-lead equity investors for the company’s next chapter of growth. In addition to its equity investment alongside Charlesbank, Goldman Sachs is concurrently leading a significant subordinated debt financing that will support continued acceleration of World Insurance Associates’ acquisition strategy and organic expansion. Across both investments, Goldman Sachs will be investing more than $1 billion into World Insurance Associates, which currently has a total enterprise valuation of approximately $3.4 billion. World Insurance Associates’ management team and employee shareholders will remain investors alongside Charlesbank and Goldman Sachs.
Since its founding in 2011, and accelerated by Charlesbank’s original investment three years ago, World Insurance Associates has driven growth through a combination of acquisitions and organic initiatives enabled by the company’s fully integrated, data-enabled operating platform. The company has more than 2,000 employees in 260 offices across the U.S. who serve more than 300,000 clients.
“We are extremely excited to have a leading global financial institution like Goldman Sachs join Charlesbank at this juncture in our partnership,” Rich Eknoian, CEO and founder of World, said. “The major investment Goldman Sachs is making in World will be an accelerant for us, and we intend to take full advantage of it. As we continue to aggressively execute our growth plan, this is momentous affirmation that our unique, integrated business model is working.”
“Rich and his team have done a fantastic job growing World over the past few years, creating a leading and integrated platform with a broad set of attractive client offerings,” Anthony Arnold, managing director in private equity at Goldman Sachs Asset Management, said. “We believe our investment and access to both the insurance and wealth management capabilities within Goldman Sachs can help propel the company over the years ahead.”
“We are thrilled to be partnering with World,” Beat Cabiallavetta, head of hybrid capital at Goldman Sachs Asset Management, said. “The company has firmly established itself as a leading U.S. brokerage platform with a highly differentiated business model and a proven track record of growth. We look forward to working together with management and Charlesbank on World’s next stage of growth and to execute on the significant opportunities ahead.”
“We have enjoyed a terrific partnership with World over the last three years and want to congratulate Rich and the entire World team on all their accomplishments,” Michael Choe, CEO and managing director at Charlesbank, said. “They have consistently impressed us by over-delivering on their ambitious vision and driving industry-leading growth. We believe the company is well-positioned for further success and are excited to welcome Goldman Sachs as an investment partner.”
“While this marks a milestone for our investment in World, we are equally enthusiastic for our next chapter as co-lead investors with Goldman Sachs,” David Katz, managing director at Charlesbank, said. “World has made extensive investments in management, technology, service operations, and resources, becoming a fully integrated brokerage platform that is poised to benefit from industry tailwinds. We’re eager to continue collaborating with Rich and the team as they build on World’s differentiated operating model and impressive trajectory.”
The transaction is expected to close in Q4/23, subject to customary closing conditions and regulatory approvals. After closing, Charlesbank and Goldman Sachs will have equal representation on World Insurance Associates’ board of directors. Evercore Group and Piper Sandler served as financial advisors to World Insurance Associates. Simpson Thacher & Bartlett provided legal counsel to World Insurance Associates and Charlesbank. Goldman Sachs served as financial advisor and Weil, Gotshal & Manges and Willkie Farr & Gallagher provided legal counsel to Goldman Sachs.