A consortium of investors led by Ethos Capital, British Columbia Investment Management and White Mountains has agreed to acquire an ownership position in insurance brokerage BroadStreet Partners.
The financial terms of the agreement remain undisclosed.
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Ontario Teachers’ Pension Plan acquired a majority stake in BroadStreet in 2012 and will retain a co-control stake, continuing its partnership with the new investor group.
BroadStreet Partners specialises in commercial and personal property & casualty and employee benefits and is known for its collaborative model with Core Agency Partners.
This model involves BroadStreet’s provision of resources, tools and expertise to support the growth and performance of these independent insurance agencies.
The company’s co-ownership structure involves more than 800 colleagues who hold equity in their respective Core Agencies.
The new partnership is expected to strengthen BroadStreet’s long-term strategy, which includes further investments in technology and digital transformation.
BroadStreet CEO Mike O’Connor said: “BroadStreet is uniquely positioned as the partner of choice for successful entrepreneurs seeking new avenues for growth. Our differentiated co-ownership model and proven strategy empower our 30 Core Agency Partners to scale their businesses with confidence.
“For over a decade, the Ontario Teachers’ team has been a value-added partner to us. We are excited to continue this collaboration and now join forces with Ethos, BCI and White Mountains, leveraging their collective expertise to enhance our capabilities and drive sustained growth.”
BroadStreet has operations across all 50 US states and all ten Canadian provinces.
Advisory services for the transaction were provided by Ardea Partners as the lead financial advisor to Ontario Teachers’ and BroadStreet, with RBC Capital Markets and BMO Capital Markets as co-advisors.
Legal counsel was provided by Latham & Watkins and Torys for Ontario Teachers’ and BroadStreet, Kirkland & Ellis for Ethos Capital, Debevoise & Plimpton for BCI, and Cravath, Swaine & Moore for White Mountains.
