Private equity investor Reverence Capital Partners has entered into a definitive agreement to acquire a majority stake in Sunstar Insurance Group.
The companies did not reveal the financial specifics of the transaction.
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Founded in 2012 and based in Memphis, US, Sunstar operates as a retail insurance intermediary platform, with a focus on the south-east and Midwest US.
It operates on an integrated hub-and-spoke model, offering a range of insurance brokerage services.
These services cater to both small and medium-sized businesses and individual clients, focusing on commercial property and casualty (P&C), personal P&C and employee benefits.
Sunstar, with more than $1.2bn in premiums placed, is reputed to be the 33rd-largest independent insurance agency in the US.
Sunstar’s current management team, comprising Casey Bowlin, founder and CEO; Greg Lottes, president and COO; Chris Parcell, CFO; and Nick Colicchio, vice-president of carrier relationships and strategic partnerships, will continue to lead the company.
As part of the agreement, the management and key personnel will reinvest a substantial part of their proceeds from the deal, retaining a meaningful minority ownership in the company.
Bowlin said: “I am delighted to now be partnered with such a successful and prominent firm as Reverence Capital Partners.
“With their ongoing support and equity capital backing, I am quite confident that the future growth curve of Sunstar will continue to be upwardly remarkable.”
Reverence Capital managing partner Milton Berlinski said: “Casey and his team have built a differentiated and rapidly growing platform thanks to exceptional leadership, a unified and team-oriented culture and a disciplined approach to M&A.
“We are thrilled to be partnering with such a high calibre management team and look forward to providing the necessary capital and support to execute on Sunstar’s plan of accelerated organic and inorganic growth.”
Piper Sandler & Co. and Bass, Berry & Sims acted as financial advisor and legal counsel, respectively, for Sunstar.
Meanwhile, Kirkland & Ellis provided legal counsel to Reverence Capital Partners in this transaction.
