Risk Strategies Company Announces Transaction With Kohlberg & Company
New Majority Owner Kohlberg & Company Designates Risk Strategies as Its Platform Company in Insurance Brokerage Industry; New Investment Will Fuel Company's Continued Growth, Expansion
BOSTON, June 27, 2013 -- Risk Strategies, a leading national specialty insurance brokerage and risk management and consulting firm, today announced the completion of a significant transaction and partnership that positions the Company for accelerated growth and an enhanced value proposition for current and future customers and partners. Kohlberg & Company, L.L.C, a private equity firm specializing in middle market investing, has acquired a majority of the Company's stock and reserved substantial additional equity capital to support RSC's client and growth initiatives from its recently-closed, $1.6 billion fund, Kohlberg Investors VII. Terms of the agreement were not disclosed.
Founded in 1997 and ranked among the largest insurance brokerage firms in the U.S., privately-held RSC is a leader in Property & Casualty and Employee Benefits insurance. With a focus on middle/upper-middle market commercial and high-net-worth clients, RSC's vertical industry expertise includes manufacturing, construction, social service, healthcare, higher education, private equity, private client and real estate.
RSC's executive team -- led by Chief Executive Officer and Founder Michael Christian -- will remain completely intact, providing stability to clients, trading partners and employees. RSC management and employees have also retained significant ownership.
As part of the transaction, insurance industry veteran Roger E. Egan has joined RSC's leadership team as Executive Chairman. Egan brings 40 years of insurance brokerage experience in executive management and operations and as a director and investor in various companies and institutions across the insurance industry. Egan previously served as CEO of Integro, Ltd. and spent more than 30 years in operating and executive management roles, including President, at Marsh Inc.
The new investment and partnership will help RSC enhance its client resources, add new teams of professionals in several important segments and continue its strategic M&A activities to create additional growth opportunities.
"Today Risk Strategies Company reaches a major milestone in our continued evolution as a national insurance brokerage industry leader," said Christian. "With the support of our new partners, we will rapidly accelerate our plans to be a more powerful force in the brokerage arena. Kohlberg & Company's track record of investment success and singular focus on value creation in the middle market makes them the ideal investment partner for Risk Strategies Company, and Roger Egan's deep industry experience will be invaluable in our continuing development and implementation of our strategic growth plans. I look forward to working closely with Roger and Kohlberg to take our company to new heights."
"Risk Strategies Company has carefully and steadily grown organically and through thoughtful M&A to become one of the premier insurance brokerage firms serving the mid-market and upper mid-market during the past fifteen years," commented Mr. Egan. "I am excited about working with Mike and his team as we seek to expand the firm's national footprint, add resources, and build value for clients, partners and shareholders."
To learn more about Risk Strategies, please visit www.riskstrategies.com
About Risk Strategies
Risk Strategies is the 9th largest privately held US brokerage firm offering comprehensive risk management advice, insurance and reinsurance placement for property & casualty, employee benefits, private client services, as well as consulting services and financial & wealth solutions. With more than 30 specialty practices, Risk Strategies serves commercial companies, nonprofits, public entities, and individuals, and has access to all major insurance markets. Risk Strategies has over 100 offices including Boston, New York City, Chicago, Toronto, Montreal, Grand Cayman, Miami, Atlanta, Dallas, Nashville, Washington DC, Los Angeles, and San Francisco. RiskStrategies.com.