Carlyle has picked up a majority stake in tech-enabled insurance claims business Sedgwick in a deal with KKR valued at approximately $6.7bn.
KKR who first backed the business in 2014, will fully divest from Sedgwick following the close of the deal. Existing investors Stone Point Capital and Caisse de dépôt et placement du Québec will retain their minority stakes. Carlyle tapped its $18.5bn Fund VII to fund the deal.
Sedgwick provides technology-enabled risk, benefits and integrated business services to companies globally. Sedgwick manages over 3.6 million claims and has fiduciary responsibility for more than $19.5bn worth of claim payments.
Its integrated technology is able to streamline claims processes for areas such as workers’ compensation, liability, property, disability and absence management.
The deal is expected to close later this year, subject to regulatory approval.
“We are pleased to partner with the exceptional management team and highly talented colleagues of Sedgwick, said Carlyle managing director and co-head of global financial services, John C Redett.
“We look forward to participating in Sedgwick’s next chapter of growth and innovation and working with the company as it builds out its global platform to meet the increasingly complex needs of its clients around the world, while leveraging the One Carlyle network.â€
This news follows a very active fundraising period for Carlyle, after the global buyout house closed its eighth US real estate fund on its $5.5bn hard cap and its seventh flagship vehicle on $18.5bn; both in the last few months.
Earlier in the year, the firm took part in the colossal $14bn Series C funding round of China-based payments giant Ant Financial.
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