PE firm HGGC replaces Pollen as main investor in Specialist Risk

Specialty broker Specialist Risk Group (SRG) has unveiled a change in ownership. Middle-market private equity firm HGGC will replace Pollen Street Capital as its main shareholder.

As part of the deal, the management team of SRG will invest alongside HGGC and continue to hold a significant stake in the business.

The private transaction is expected to close in Q1 2021, subject to regulatory approval.

As part of the transaction, existing investor Pollen Street Capital will exit the business. SRG was formed by Pollen Street Capital through the acquisition of Miles Smith in 2018 and The Underwriting Exchange in 2019.

“We are delighted to partner with HGGC, a firm that is completely aligned with our values as a culture and people-driven company,” said Warren Downey, SRG Group CEO. “We share a common ethos and expansive ambition, and I am tremendously excited for the next chapter of the SRG story. I would like to thank the team at Pollen Street for their support of the business through this foundational stage of SRG’s history.”

HGGC, based in Palo Alto, California, is also the majority investor in London-based Davies Group, a specialist professional services and technology firm serving the insurance industry. Since 2017, Davies has completed 26 add-on acquisitions and total revenue growth of more than 5x.

In the US, HGGC is also an investor in Pearl Holding, a non-standard auto managing general agent; Integrity Marketing Group, a leading life and health insurance distributor focused on the senior market; and PCF Insurance, a full-service insurance brokerage firm that provides complete risk management and employee benefits solutions.

“The team at SRG has a unique and impressive set of insurance distribution capabilities. We are thrilled to pair our industry knowledge with their expertise to help grow SRG organically and through acquisition,” said Neil White, Partner at HGGC.