Hyperion sells up to $1.5bn stake to Hg to accelerate strategic growth

Hyperion Insurance Group has secured up to $1.5 billion growth funds from European private equity firm Hg Capital, which will take a minority stake in the insurance intermediary at an enterprise value of approximately $5 billion.

The investment will provide Hyperion with funds to accelerate its strategic growth with both acquisitions and investments in data and technology.

Hg will join Hyperion as an aligned, long-term, growth partner alongside General Atlantic, which invested in Hyperion in 2013, and CDPQ, which invested in Hyperion in 2018. Both General Atlantic and CDPQ remain committed to being partners of Hyperion alongside Hg.

Following the investment, Hyperion's management team and employees will continue to be the largest shareholder group in the company, with more than 1,000 individuals now owning shares.

The transaction seeks to establish a sustainable, long-term capital model supported by collaborative investment partners. It will enable Hyperion to build out Howden as a leading international challenger broker and DUAL as an international specialist MGA.

Hyperion represents Hg’s sixth investment in the insurance and insurtech sector over the last five years – with these businesses together totalling over $1 billion of invested client capital.

Hyperion’s broking arm Howden recently announced it had reached an agreement to acquire A-Plan Group from Hg, in a deal that is set to create what it describes as a "UK broking powerhouse" managing over £4 billion of gross written premium.

David Howden, chief executive officer of Hyperion, said: “I am thrilled to welcome Hg as a long-term partner. During our conversations on A-Plan Group it was clear that Hg and Hyperion share an understanding of what building a business to last means for employees and clients. This, the quality of the Hg team, their support for our core employee ownership and our culture of empowerment, and the desire of the Hg partners to contribute to our digital and data strategy, makes them an excellent partner to join General Atlantic and CDPQ as we continue our journey.”

Andrew Land, partner at Hg, said: “It is a privilege for Hg to back David and his fantastic team through this investment in Hyperion. The company is a unique and special business, driven by its outstanding culture and quality of talent, and it has a significant growth opportunity across the global insurance sector in the coming years. We got to know David during the recent sale by Hg of A-Plan Group to Hyperion, and it became clear that our long-term investment approach and specialism in technology were a great match for him and his team. In addition to providing capital, Hg’s deep knowledge of software and data will help Hyperion stay at the forefront of technology adoption across the insurance sector.”

Nic Humphries, senior partner at Hg, added: “This long-term investment in Hyperion reflects Hg Saturn’s strategy of backing entrepreneur-led growth businesses in software and tech-enabled services that are sector champions. In Saturn’s recent investments in Visma, P&I, Argus Media, Sovos and now Hyperion, we developed a trusted relationship with the founder or CEO over a long period, enabling us to offer them the investment structure they needed to meet their long-term plans. David and his team have built one of the global leaders in insurance distribution and we are excited in supporting them for many years to come.”

Dominic Collins, chairman of Hyperion, commented: “I am delighted that Hg have chosen to become a partner alongside General Atlantic and CDPQ. It is a privilege to work with three partners who embrace our core ambition to build a sustainable and successful business, and who will help us to deliver on our strategy over the coming years at this very exciting time in the industry. The Hg team bring not only significant capital, but also considerable expertise and I look forward to welcoming them to the Board.”