British insurance broker Ardonagh, owned by US private equity investors HPS Investment Partners and Madison Dearborn Partners, has reportedly established an asset management division.
The move is part of the company’s plan to accelerate its buy-and-build strategy after last year’s £2bn refinancing, The Financial Times has reported.
Last year, Ardonagh raised capital from Ares, private equity group KKR and Canada’s Caisse de dépôt et placement du Québec and announced a £300m facility for deals.
It plans to spend about £1bn over the next three to four years on bolt-on acquisitions.
Ardonagh chief executive David Ross told the publication an interview: “What we are effectively doing is setting ourselves up almost as a private equity investor.
“We are a link in the chain between a really substantial, entrepreneurially driven business and traditional capital.”
The newly created unit, Ardonagh Global Partners, will be led by Bravo Group’s ex-chief executive Des O’Connor.
Concurrently, Ardonagh also agreed to buy US-based healthcare insurance specialist AccuRisk, which will part of the new division.
Additionally, Australian broker Resilium and HWF Partners, in which the group announced majority stakes this year, will become part of Ardonagh Global Partners.
Last week, Insurance broker Acrisure marked its entry to the US asset management space with the establishment of a new division, Acrisure Asset Management.
Acrisure co-founder, president and CEO Greg Williams said that the move is the first step towards driving the company’s tech-enabled solutions beyond insurance service.