Funds managed by Goldman Sachs Asset Management will invest more than $1 billion in debt and equity in World Insurance Associates LLC, the acquisitive brokerage announced Monday.
The investment indicates an enterprise value of $3.4 billion for Iselin, New Jersey-based World Insurance, which has more than $500 million in total revenue, the brokerage said in a statement.
World Insurance, which grew its brokerage revenue more than 50% last year to $347.2 million, is the 28th-largest brokerage of U.S. business, according to Business Insurance’s most recent ranking. The brokerage also owns Novatae Risk Group, its wholesale unit, and benefits-related businesses.
Goldman Sachs will be a co-lead equity investor in World Insurance alongside Charlesbank Capital Partners, which invested in the company in 2020, the statement said.
The transaction, which includes subordinated debt financing, is expected to close in the fourth quarter.
The financing “will support continued acceleration of World’s acquisition strategy and organic expansion,” the statement said.
Founded in 2011, World Insurance has been an active buyer of smaller brokerages over the past several years. In the first half of 2023, it announced 17 acquisitions.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.