Article ID: 5702e8f6631ecf08f8cbc09727f89ad949731f17d61fe0c10f2a9ba7c11df4a0
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: bs4_heuristic
URL: https://www.businessinsurance.com/baldwin-deal-highlights-family-office-interest-in-brokerages/
Body Text
Baldwin deal highlights family office interest in brokerages - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Baldwin deal highlights family office interest in brokerages by Matthew Lerner Agents and Brokers , Mergers and Acquisitions Baldwin Group Sep 22, 2026 The recent sale of The Baldwin Group to investors led by the family office of technology billionaire Michael Dell shines a light on the insurance-related investments by the often closely held investment vehicles. The firms, which manage the investment portfolios of a private family fortune, often operate in parallel with their usually larger and better-known private-equity counterparts, but may have different investment criteria and be more opaque, observers say. When Baldwin went public in 2019, the Dell family office was one of the earliest investors, regulatory filings show. Under the terms of the deal to return the brokerage to private ownership, which was announced last week , the family and other investors will pay $7.7 billion for Baldwin. “What Trevor did a really good job of is cultivating relationships and building relationships with these family offices and investors,” said Harrison Brooks, Atlanta-based partner at Reagan Consulting, referring to Baldwin CEO Trevor Baldwin. The investment goals of a family office may differ from those of private equity firms, Mr. Brooks said. For example, such offices may have a return goal of 15% compared with the 20% or 25% that private equity firms often seek, and they may be willing to trade rate for the security found in a stable, long-term asset such as a brokerage with consistent double-digit annual growth, Mr. Brooks said. The insurance distribution sector is “a great place to park capital,” Mr. Brooks said. The Dell-Baldwin deal was likely “opportunistic,” said Tim Cunningham, Chicago-based managing partner at Optis Partners, an insurance merger and acquisition consulting firm. The deal provides Baldwin with some needed balance sheet strength to help service its debt, he said. Large family offices like the Dells often resemble and operate like private equity funds, Mr. Cunningham said. Many are already invested in or exposed to the brokerage sector, through direct investment or private equity funds. Public brokerage stock prices fell earlier this year amid speculation about the disintermediation effects of artificial intelligence and, more recently, have remained softer due to weaker property insurance pricing, Mr. Cunningham said. The valuation of the Baldwin deal, at 20 times trailing adjusted earnings before interest, taxes, depreciation and amortization, makes it noteworthy, said Michael J. Fletcher, New York-based managing partner at merger and acquisition consultancy Sica Fletcher. A multiple that high could encourage other sellers to come to market, such as large private equity-backed brokerages with investors looking to cash out, Mr. Fletcher said. Rising interest rates are making it harder for such private equity-backed brokerages to achieve targeted returns while servicing debt, potentially making family offices more attractive as investors due to their different investment and return requirements. “Private equity, they charge two and 20 – 2% management fee and 20% of any profits that they generate for their shareholders – which is pretty expensive, so for them to really generate returns that their shareholders expect, it’s very difficult to pay 16 times EBITDA for something and generate those types of returns,” Mr. Fletcher said. Dell doesn’t have to worry about two and 20; Dell doesn’t have to worry about selling the business in five years and getting more for it than they paid and securing an exit for their investors,” he said. MarshBerry changed its nomenclature from “private equity-backed brokers” to “private capital-backed brokers” several years ago to reflect the wider array of capital sources beyond traditional private equity firms, and to include family offices and entities such as pension plans, said Phil Trem, president of the Woodmere, Ohio-based merger and acquisition advisory company. While it may not be unusual for a family office to invest in the brokerage sector, it is more novel that such an office would take the lead on such a sizeable investment, Mr. Trem said. “It is a unique deal.” Related News Chubb unit needn’t cover insolvent insurer’s gap: Colorado court September 22, 2026 Arcadian unveils US excess casualty cover, names exec September 22, 2026 Crane safety report highlights communication, training gaps September 22, 2026 N.Y. bill would increase penalties for unpaid comp medical bills September 22, 2026 Judge rules for Sompo unit in COVID cover fight September 22, 2026 CRC introduces Insurisk Cyber coverage September 22, 2026 Sonic operator wins arbitration appeal in worker’s fatal shooting September 22, 2026 US businesses invest more in cyber insurance, security controls September 22, 2026 Axis hires former Navigators casualty head September 22, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
Metadata (JSON)
{
"score": 18.566666666666666
}