Bain Capital’s special-situations arm is reportedly in discussions to invest up to $2 billion in Acrisure, an insurance broker. This investment is expected to take the form of preferred equity, although the terms are still being finalized and may change.
If the deal goes through, it would allow BDT & MSD Partners, which previously invested $3 billion in senior preferred stock in Acrisure in 2021, to redeem part of its investment. Representatives from Bain and BDT & MSD have declined to comment, and Acrisure has not provided a statement.
Bain Capital, based in Boston, manages approximately $185 billion in assets and invests across various sectors, including technology and healthcare. Acrisure, co-founded by CEO Greg Williams, connects clients with a range of insurers and identifies itself as a financial-technology company. The firm has reported revenues exceeding $4.8 billion and has notable investors, including a subsidiary of the Abu Dhabi Investment Authority and Guggenheim Investments.
Founded in 2005 and headquartered in Grand Rapids, Acrisure has been considering an initial public offering (IPO). To prepare for this, the company has been hiring executives with experience in publicly traded fintech firms, particularly from the New York Stock Exchange.
Greg Williams has indicated that both the company and market conditions must align before pursuing an IPO. He emphasized the importance of timing and operational readiness, stating, “You get one chance to do this, and only one chance to do this.”
Acrisure has experienced rapid growth, more than doubling its revenues since 2021, with a valuation nearing $27 billion by late 2023. The company, ranked as the seventh-largest insurance brokerage globally by Business Insider, moved its corporate office to a new downtown location in 2021 and has since expanded to accommodate its workforce of over 19,000 employees across 22 countries.
As of fall 2023, Acrisure has outgrown its current office space and has leased an additional location to support its growth. Williams has suggested that the company may eventually need to construct a new office tower to accommodate its expanding operations.
Acrisure has played a significant role in establishing Grand Rapids as a notable hub for the insurance industry.
