Warburg Pincus Agrees to Acquire K2 Insurance Services

Transaction Overview

On 12/1/2022, Warburg Pincus (“Warburg”) announced it has agreed to acquire K2 Insurance Services (“K2”)

  • Warburg will acquire K2 from majority owner Lee Equity which acquired K2 in 2019 from Endeavour Capital

Formed in 2011, K2 has become a leading independent specialty insurance program manager

  • Led by CEO and Co-Founder Bob Kimmel along with a world class management team
  • Headquartered in San Diego, California and employs over 500+ people across the country

K2 is a specialty MGA platform offering differentiated underwriting expertise in niche lines of business

  • Services over $1bn of premium annually
  • Comprised of 24 specialized programs each with distinguishable product prowess in:
    • Specialty Commercial, Specialty Transportation, International and Personal lines of business
  • Centralized functions include: distribution, capacity relationships, technology, actuarial and claims
  • Supported by a world class panel of global insurance and alternative capital partners

Warburg is a leading global growth investor with more than $85bn in assets under management

  • The firm’s active portfolio of more than 255 companies is highly diversified by stage, sector, and geography
  • Experienced partner to management teams seeking to build durable companies with sustainable value
  • Insurance investments have included:
    • Aeolus Re, Arch Capital, Cox Insurance Holdings, Fetch, Fortegra, Foundation Risk Partners, ICICI Lombard Insurance, Max Life, McGill & Partners, RenaissanceRe, SBI General Insurance, SCM Insurance and Somers Re

TigerRisk Capital Markets & Advisory Role

TCMA is acting as financial advisor to Warburg; key roles and responsibilities included:

  • Assisting with financial modeling and valuation analysis
  • Conducting business and financial due diligence in support of Warburg’s Investment Committee materials
  • Providing insights on various K2 programs utilizing broader TigerRisk resources
  • Assisting in a detailed review of K2’s carrier panel / capacity relationships
  • Offering insights around transaction consideration, terms and conditions
  • Providing objective advice and acting as a confidant to Warburg throughout the process

TCMA played a critical role in positioning Warburg to win in this competitive process

  • Under-pinned by TCMA’s close relationship with K2 management, and;
  • TCMA’s deep understanding of the company’s strategic objectives and culture