Sedgwick announces closing of $1B equity investment from Altas Partners and new investments from Carlyle and Stone Point

Rhea-AI Summary

Sedgwick, a global provider of claims management and business solutions, has announced the closing of a $1B equity investment from Altas Partners. The deal includes new investments from existing investors Carlyle (NASDAQ: CG) and Stone Point Capital, with Carlyle maintaining its control position. CDPQ and Onex continue as minority shareholders. Following Altas' investment, Sedgwick's total enterprise value has reached $13.2 billion, up from $6.7 billion since Carlyle's initial 2018 investment. The company will remain independent and private, focusing on claims handling excellence and technological innovation.

Positive

• Enterprise value doubled from $6.7B to $13.2B since 2018
• Secured $1B new equity investment from Altas Partners
• Maintained strong investor backing with Carlyle, Stone Point, CDPQ, and Onex continuing support

Negative

• None.

MEMPHIS, Tenn., Nov. 12, 2024 /PRNewswire/ -- Sedgwick, a leading global provider of claims management, loss adjusting and technology-enabled business solutions, announced the closing of a significant minority investment in Sedgwick led by Altas Partners ("Altas"), a North American private equity firm, which was made public last month.

Current investors, including funds managed by global investment firm Carlyle (NASDAQ: CG) and Stone Point Capital LLC, will remain as investors and continue to make significant new investments in the business, with Carlyle maintaining its control position in partnership with the investor group and the Sedgwick management team. Longtime investors CDPQ and Onex are continuing their support of Sedgwick as minority shareholders.

"Today marks a significant milestone for Sedgwick as we embark on our journey that brings together a strategic vision building on our global footprint, comprehensive service capabilities and new service offerings for decades to come," said Mike Arbour, CEO of Sedgwick. "We are grateful to our team of investors for their continued support of our work."

Following the investment by Altas, Sedgwick's total enterprise value is now approximately $13.2 billion, an increase from $6.7 billion when Carlyle made its initial investment in Sedgwick in 2018.

As Sedgwick continues to grow and expand operations, services and offerings around the world, our colleagues, with the support of the investors, will enhance this mission. The company will continue to remain an independent, private company with an unwavering focus on claims handling excellence, leveraging data and technological innovation to drive new successes.

Morgan Stanley & Co. LLC and BofA Securities served as financial advisors and Latham & Watkins LLP served as legal advisor to Sedgwick. J.P. Morgan Securities LLC and Barclays served as financial advisors and Kirkland & Ellis served as legal advisor to Altas.

About Sedgwick 
Sedgwick is a leading global provider of claims management, loss adjusting and technology-enabled business solutions. The company provides a broad range of resources tailored to clients' specific needs in casualty, property, marine, benefits, brand protection and other lines. At Sedgwick, caring counts; through the dedication and expertise of over 33,000 colleagues across 80 countries, the company takes care of people and organizations by mitigating and reducing risks and losses, promoting health and productivity, protecting brand reputations, and containing costs that can impact performance. Sedgwick's majority shareholder is The Carlyle Group; Stone Point Capital LLC, Altas Partners, CDPQ, Onex and other management investors are minority shareholders. For more, see sedgwick.com.

About Altas Partners
Altas Partners is a North American private equity firm focused on selectively acquiring significant interests in high-quality businesses with meaningful growth potential. Altas focuses on services sub-sectors where it has deep expertise, seeking one or two compelling investment opportunities each year. The firm's patient investment philosophy and engaged approach to ownership distinguish Altas as a buyer of choice for many management teams and founders. The firm was founded in 2012 and operates from offices in Toronto and New York. Altas manages approximately $10 billion on behalf of leading institutional and family office investors from around the world. For more, visit altas.com.

About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across its business and conducts its operations through three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $435 billion of assets under management as of June 30, 2024, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,200 people in 29 offices across four continents. Further information is available at carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group.

About CDPQ
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2024, CDPQ's net assets totaled CAD 452 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a trademark registered by the Caisse de dépôt et placement du Québec and used under license by its subsidiaries. 

About Onex Corporation
Onex invests and manages capital on behalf of its shareholders and clients across the globe. Formed in 1984, we have a long track record of creating value for our clients and shareholders. Our investors include a broad range of global clients, including public and private pension plans, sovereign wealth funds, insurance companies, family offices and high-net-worth individuals. In total, Onex has $49 billion in assets under management, of which $8.5 billion is Onex' own investing capital. With offices in Toronto, New York, New Jersey and London, Onex and its experienced management teams are collectively the largest investors across Onex' platforms.
Onex is listed on the Toronto Stock Exchange under the symbol ONEX. For more information on Onex, visit https://www.onex.com/. Onex's security filings can also be accessed at https://www.sedarplus.ca/landingpage/.

About Stone Point Capital
Stone Point is an alternative investment firm based in Greenwich, Connecticut, with more than $55 billion of assets under management. Stone Point targets investments in companies in the global financial services industry and related sectors. The firm invests in alternative asset classes, including private equity through its flagship Trident Funds and credit through commingled funds and separately managed accounts. In addition, Stone Point Capital Markets supports the firm, portfolio companies and other clients by providing dedicated financing solutions. For more information, please visit stonepoint.com.

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SOURCE Sedgwick Claims Management Services, Inc.

FAQ

What is Sedgwick's current enterprise value after the Altas Partners investment?

Following the Altas Partners investment, Sedgwick's total enterprise value is approximately $13.2 billion.

How much did Sedgwick's enterprise value increase since Carlyle's (CG) initial investment?

Sedgwick's enterprise value increased from $6.7 billion in 2018, when Carlyle (CG) made its initial investment, to $13.2 billion currently.

How much is Altas Partners' equity investment in Sedgwick?

Altas Partners made a $1 billion equity investment in Sedgwick as a significant minority investment.

Will Carlyle (CG) maintain control of Sedgwick after the Altas Partners investment?

Yes, Carlyle (CG) will maintain its control position in Sedgwick in partnership with the investor group and management team.