UK broker Ardonagh nabs almost £2bn in mega financing deal

UK insurance intermediary Ardonagh Group has secured the "largest ever unitranche" loan of £1.875 billion, led by alternative asset manager Ares Management Corporation, to support its business expansion plans.

The financing is comprised of a £1.575 billion unitranche loan and a £300 million committed capital expenditures facility.

Ardonagh is majority owned by HPS Investment Partners and Madison Dearborn Partners. The group brings together several insurance brokerage brands including Autonet, Bishopsgate, Carole Nash, Geo Underwriting, Price Forbes, Swinton, Towergate and URIS.

“We believe this is the largest ever unitranche financing transaction globally, which is a testament to the quality of The Ardonagh Group, our long-standing relationships with HPS Investment Partners and Madison Dearborn Partners and the advantages created by our global and scaled platform,” said Blair Jacobson, partner and co-head of European Credit and Mark Affolter, partner and co-head of US Direct Lending. “We believe there is a significant need in the current market to serve as a partner to companies in need of scaled financial solutions and are excited to support Ardonagh in realizing its growth ambitions.”

Luis Mayans, partner and deputy head, Private Debt at CDPQ, added: “This is a major transaction for the lending group in Europe. It will support Ardonagh’s growth over the coming years. Over the years, Ardonagh has developed an attractive business model by bringing together specialized insurance brokerages that are leaders in their respective niches, and we're pleased to offer them a financial solution that meets their needs.”

David Ross, CEO of The Ardonagh Group commented: “The substantial commitment from this lending group led by Ares is a vote of confidence in Ardonagh and our management team. The structure of the unitranche facility and additional committed capital expenditures facility leave us well positioned to deliver the next phase of our growth strategy and beyond.”