HUB International could create second strong PE exit in a row, valued at up to $7bn


US insurance brokerage HUB International could be about to score another private equity firm a strong return amid rumours current owner Hellman & Friedman is exploring a sale valuing it at up to $7bn.

Hellman picked up HUB four years ago in a $4.4bn deal, giving  buyout owner Apax Partners a 3x return at the time.

Reuters said Hellman had hired an investment bank to explore the stake sale, which could still keep a smaller stake in the business following the exit. It cited unnamed people it said were familiar with the matter.

It added that several private equity firms, sovereign wealth funds and public pension funds were considering an investment in HUB.

Earlier this year KKR and Canadian pension fund Caisse de dépôt et placement du Québec have teamed up to buy USI Insurance Services in a deal worth $4.3bn.

This transaction was made from KKR’s and CDPQ’s core private equity partnership, which includes funds from KKR and the capital pool of CDPQ.

USI offers insurance including property and casualty, employee benefits, personal risk and retirement solutions from 140 offices across the US.

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