Private Equity Insurance Acquisition
EQT Agrees to Acquire Majority Stake in McGill and Partners for $2 Billion
Anonymous
Key Points
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The transaction values McGill and Partners at approximately $2 billion including debt, equivalent to roughly eight times its annual revenue of more than $250 million.
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McGill and Partners specializes in complex risks, including aviation and shipping, giving EQT exposure to highly specialized insurance markets.
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EQT partner Matthias Wittkowski said McGill had been on the firm’s radar for a long time and that EQT plans to expand the broker’s U.S. operations, which it views as a market with significant potential.
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EQT plans to introduce an Equity Participation Plan giving every McGill colleague the opportunity to share directly in the company’s future growth, with part of the plan reserved for expanding the firm’s talent base.
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McGill’s founding team included Steve McGill, John Lloyd, Stephen Cross and Karl Hennessy, with Warburg Pincus’s cornerstone investment supporting the creation of a new category of reinsurance broker.
EQT, a Swedish private equity firm, has agreed to buy a majority stake in McGill and Partners, a London-based insurance broker, for roughly $2 billion PEhub. Warburg Pincus is selling its entire holding, while founder Steve McGill, Chairman John Lloyd, and employees will keep meaningful ownership stakes. The deal values McGill at about eight times its $250 million annual revenue and is expected to close in the first half of 2027 City A.M..
A Specialty Broker With Global Reach
McGill was founded in May 2019 by Steve McGill and John Lloyd City A.M.. The firm has grown to over 600 employees across seven countries, serving more than 1,000 clients. McGill specializes in complex, niche risks like aviation and shipping insurance. This focus gives it steady fee income and exposure to hard-to-reach insurance markets PEhub.
EQT's Plan to Expand U.S. Operations
EQT partner Matthias Wittkowski said McGill had been on the firm's radar for a long time PEhub. EQT views the U.S. market as having significant growth potential and plans to expand McGill's operations there. The Swedish firm will also invest in hiring, technology, data analytics, and new digital products PEhub.
Employees to Share in Growth Through Equity Plan
EQT plans to introduce an Equity Participation Plan that gives every McGill employee the chance to own a piece of future company growth City A.M.. Part of the plan is reserved for hiring new talent as the firm expands. This structure keeps the founding team and current staff motivated while the business scales PEhub.
Private Equity's Growing Appetite for Insurance Brokers
The deal reflects a broader trend of private equity firms buying specialist insurance brokers PEhub. These firms attract buyers because they operate in niche markets with sticky, recurring revenue. Insurance brokers like McGill command premium valuations—in this case, eight times annual revenue—because their client relationships are hard to replicate City A.M..
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