PCF Insurance Services secures $400m debt financing led by Blue Owl

PCF Insurance Services, a prominent U.S. insurance brokerage, has successfully secured $400m in incremental debt financing.

PCF Insurance Services, a prominent U.S. insurance brokerage, has successfully secured $400m in incremental debt financing.

The financing round was led by Blue Owl, a global alternative asset manager, who acted as the lead arranger and administrative agent.

This financing, initially planned for $300m, was upsized due to strong demand from both new and existing lenders.

Felix Morgan, Chief Financial Officer and Chief Operating Officer for PCF Insurance, stated, “The oversubscription in the financing and upsize in deal speaks to the strength of PCF and the confidence that our investors have in our bright future and ability to deliver on our long-term, strategic growth objectives. We will use the financing proceeds to further fund the expansion of our Office Partner network, as we look to accelerate execution of our M&A strategy with the support of our great partner investors.”

The financing structure includes incremental term debt to facilitate near-term acquisitions and a delayed draw term loan to bolster M&A activities.

Importantly, this financing is pari passu with the existing senior facilities and will mature concurrently with them.

PCF Insurance’s previous capital raise was in February 2023 when it secured a $500m preferred equity investment, co-led by Carlyle’s Global Credit platform and private equity firm HGGC. Blue Owl and Crescent Capital, existing minority equity stakeholders, also participated in the preferred equity transaction.

Lukas Spiss, Managing Director at Blue Owl Capital, added, “We are pleased to continue serving as a capital provider to PCF and deliver the financing solutions needed for the company to execute on its growth strategy. Coupled with the backing of a stellar management team, we remain confident in PCF’s ability to achieve its long-term strategic objectives.”

In 2022, PCF Insurance completed nearly 100 partner transactions and increased its revenue to over $700m, while maintaining organic growth of 10%.

Leveraging industry knowledge, data-driven strategies, and the strong local relationships of its Office Partners, PCF Insurance offers a highly diversified suite of risk management, benefits design, and insurance brokerage services across 38 states.

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