The financing round was led by Blue Owl, a global alternative asset manager that served as lead arranger and administrative agent for the deal. Initially set at $300 million, the financing was increased to $400 million due to high demand from both new and existing lenders.
The company also managed to lower the margin on most of its debt by 50 basis points, resulting in substantial annual savings in interest expenses.
The agreement features a delayed draw term loan designed to facilitate M&A activities, running on equal footing with and expiring at the same time as PCF Insurance’s current secured credit arrangements. PCF Insurance’s most recent capital markets activity took place in July 2023, when it raised $400 million in additional debt financing, also led by Blue Owl, and in February 2023 with a $500 million preferred equity investment co-led by Carlyle’s Global Credit division and private equity firm HGGC. Blue Owl and Crescent Capital, both minority equity stakeholders in the company, also took part in the preferred equity deal.
PCF Insurance made the Inc. 5000 list of the fastest-growing private companies in the U.S. for the second consecutive year in 2023. With over 4,000 employees in 40 states, PCF Insurance taps into its team’s expertise to offer a diverse range of risk management, benefits design, and insurance brokerage services. Although the company reduced its M&A activity in 2023, it plans to ramp up both M&A and organic growth strategies in 2024.
“This most recent financing is a testament to the strength of our team and commitment to growth and will enable us to further accelerate our M&A strategy,” said Felix Morgan, Chief Executive Officer for PCF Insurance. “As part of PCF’s long-term commitment to growth, we seek to identify and acquire businesses that will benefit from strong shareholder value and robust shared services offerings along with access to collaborative, industry-leading professionals.”
“Felix and the management team at PCF Insurance Services continue to successfully execute on their growth strategy, and we are pleased to provide the company with additional capital to fund their long-term plan,” said Lukas Spiss, Managing Director at Blue Owl Capital. “We look forward to seeing what they can accomplish over the coming years and are excited to continue our partnership.”
