BroadStreet: Ethos Capital & Partners Acquire Stake in Insurance Broker
Deal News | Apr 11, 2025 | Re-Insurance News
A consortium led by Ethos Capital, British Columbia Investment Management Corporation (BCI), and White Mountains Insurance Group has acquired an ownership stake in BroadStreet Partners, an insurance brokerage firm. Ontario Teachers Pension Plan will continue a significant co-control stake, collaborating with the new investor group to pursue BroadStreet's long-term goals, including technological and digital transformation investments. BroadStreet operates a unique co-ownership model with over 800 colleagues holding equity in local Core Agencies, offering strategic alignment within the organization. This acquisition aims to enhance BroadStreet's capabilities, scale its operations through its 30 Core Agency Partners, and establish the company as a preferred option for premier insurance agencies in North America. Lead advisory roles in this transaction were provided by Ardea Partners, with RBC Capital Markets and BMO Capital Markets as co-advisors. Legal counsel included Latham & Watkins LLP, Torys LLP, Kirkland & Ellis LLP, Debevoise & Plimpton LLP, and Cravath, Swaine & Moore LLP.
Sectors
- Insurance Brokerage
- Private Equity
- Investment Management
- Legal Advisory
Geography
- North America – BroadStreet aims to become a premier insurance brokerage in North America.
- Canada – BCI and Ontario Teachers, Canadian investment entities, are central players in this transaction.
- United States – The involvement of multiple entities like Ethos Capital and advisory firms indicates activity in the US financial markets.
Industry
- Insurance Brokerage – BroadStreet Partners operates within the insurance brokerage industry, providing commercial and personal property and casualty insurance, as well as employee benefits.
- Private Equity – Ethos Capital and other investors acquiring a stake in BroadStreet reflect the involvement of private equity firms in strategic investment and growth initiatives.
- Investment Management – BCI and Ontario Teachers' involvement highlights their role in the investment management sector, focusing on long-term value creation through strategic partnerships.
- Legal Advisory – The involvement of multiple legal firms such as Latham & Watkins LLP and Kirkland & Ellis LLP points to significant legal advisory services required for such transactions.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| BroadStreet Partners | Target Company | Company | An insurance brokerage specializing in property and casualty insurance, as well as employee benefits. |
| Ethos Capital | Investor Group Leader | Company | A private equity firm leading the investor group to acquire a stake in BroadStreet. |
| British Columbia Investment Management Corporation (BCI) | Co-Investor | Company | A Canadian investment management firm participating in the acquisition. |
| White Mountains Insurance Group | Co-Investor | Company | An insurance holding company that is part of the investor group acquiring a stake in BroadStreet. |
| Ontario Teachers' Pension Plan | Existing Investor | Company | Maintains a significant co-control stake in BroadStreet and collaborates with the new investor group. |
| Ardea Partners | Lead Financial Advisor | Company | Provided lead financial advisory services to Ontario Teachers and BroadStreet. |
| RBC Capital Markets | Co-Financial Advisor | Company | Co-advisors in the financial aspects of the transaction. |
| BMO Capital Markets | Co-Financial Advisor | Company | Co-advisors in the financial aspects of the transaction. |
| Latham & Watkins LLP | Legal Counsel to Ontario Teachers and BroadStreet | Company | Provided legal advisory services. |
| Torys LLP | Legal Counsel to Ontario Teachers and BroadStreet | Company | Provided legal advisory services. |
| Kirkland & Ellis LLP | Legal Counsel to Ethos Capital | Company | Provided legal advisory services to Ethos Capital. |
| Debevoise & Plimpton LLP | Legal Counsel to BCI | Company | Provided legal advisory services to BCI. |
| Cravath, Swaine & Moore LLP | Legal Counsel to White Mountains | Company | Provided legal advisory services to White Mountains. |