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Apax Partners makes 3x return from $4.4bn Hub sale to Hellman & Friedman

5 Aug 2013

dollar_washington_money_170sqApax Partners has exited global insurance brokerage Hub International to fellow private equity firm Hellman & Friedman for $4.4bn, making a return of three times.

After the completion of the deal, Hellman & Friedman will own a majority interest in the business with members of hub’s senior management retaining a significant minority stake.

Hub, which is expected to post revenues of $1.2bn this year, has doubled its EBITDA since being bought out by Apax, Morgan Stanley and company employees in a $1.8bn take-private in 2007. The deal included $700m in equity and Apax is expected to make a return of three times, according to Fortune.

Earlier this year it was reported that Apax and Morgan Stanley were looking to sell the business for $2bn.

The company’s existing debts will be replaced with new debt financing from BofA Merrill Lynch, Morgan Stanley and RBC.

Hellman & Friedman managing director David Tunnell said, “Over 15 years, Hub has established itself as a market-leading insurance broker with a clear focus on customer success and growth.

“Its growing market footprint and capabilities will allow it to capitalize on significant opportunities going forward.  Our firm has a longstanding history of investing in insurance businesses and we look forward to working with the Company to support its next phase of growth.”

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