US insurance intermediary PCF Insurance has closed a $400m incremental debt financing round, led by global alternative asset manager Blue Owl.
This move is aimed at supporting the company’s M&A strategies, with provisions for a delayed draw term loan that aligns with the maturity of existing credit facilities.
Go deeper with GlobalData
The company last entered the capital markets in July 2023, securing an identical sum, which was also orchestrated by Blue Owl.
Prior to that, in February 2023, PCF Insurance obtained a $500m preferred equity investment, co-led by Carlyle’s Global Credit platform and HGGC, a private equity investor.
Both Blue Owl and Crescent Capital, holders of minority equity stakes in PCF Insurance, participated in the equity transaction.
The latest round of financing was initially set at $300m but was increased to $400m due to interest from lenders.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPCF Insurance also managed to reduce the interest margin on most of its debt by 50 basis points, a change expected to yield annual savings on interest expenses.
PCF Insurance CEO Felix Morgan said: “This most recent financing is a testament to the strength of our team and commitment to growth and will enable us to further accelerate our M&A strategy. As part of PCF’s long-term commitment to growth, we seek to identify and acquire businesses that will benefit from strong shareholder value and robust shared services offerings along with access to collaborative, industry-leading professionals.”
Blue Owl Capital managing director Lukas Spiss said: “Felix and the management team at PCF Insurance Services continue to successfully execute on their growth strategy, and we are pleased to provide the company with additional capital to fund their long-term plan.”
After a slowdown in M&A activities in 2023, PCF Insurance has ramped up its growth efforts in 2024, focusing on both M&A and organic strategies.
This push for expansion was highlighted earlier this month when the company extended its national presence by acquiring MK Insurance Group’s insurance business.
MK Insurance Group, a family-owned agency based in Hoover, Alabama, US, specialises in high-net-worth personal lines and serves the commercial real estate, construction and signage industries.
