HUB International Valued at $29B After $1.6B Minority Investment
HUB International has secured a $1.6 billion minority equity investment, elevating its valuation to $29 billion, marking the highest enterprise value achieved by a private insurance broker to date. This significant capital infusion was led by investment entities including T. Rowe Price Investment Management, Alpha Wave Global, and Temasek, with contributions from additional investors. Since its initial valuation of $4.4 billion during Hellman & Friedman's investment in 2013, HUB has demonstrated substantial growth, with the valuation reaching $10 billion in 2018 and $23 billion in 2023 through subsequent minority stake acquisitions. HUB's annual revenue also reflected this growth trajectory, increasing from $1.1 billion in 2013 to $4.8 billion in 2024.
The latest investment supports HUB's Liquid Private Placement program, initially established in 2023 alongside Leonard Green & Partners, which aims to provide shareholder liquidity with a focus on using proceeds primarily for growth initiatives, acquisitions, debt reduction, and maintaining cash reserves. The investment structure assures that funds will not be allocated for secondary redemptions of existing equity holders. Hellman & Friedman retains controlling interest in HUB, with management, Altas Partners, and Leonard Green & Partners maintaining significant equity stakes and board representation.
This transaction involved leading financial and legal advisors, including Morgan Stanley Smith Barney, Goldman Sachs, and Simpson Thacher & Bartlett, with the closing expected by the end of May 2025. HUB International continues to invest strategically in innovation, proprietary product development, and mergers and acquisitions, as exemplified by its recent acquisition of Allegiant Global Partners, a consultancy firm based in the U.S. The company emphasizes the role of continual investment in talent development and organic growth in maintaining consistent business performance.
The evolution of HUB's valuation and strategic capital management reflects broader trends within the insurance brokerage industry, highlighting the increasing market capitalization of top-tier firms through strategic partnerships and private capital injections. The substantial minority equity investment underscores investor confidence in HUB's growth prospects and its ability to leverage capital for continued expansion in a competitive insurance services marketplace.