EQT X has agreed to acquire a majority stake in specialty (re)insurance broker McGill and Partners from Warburg Pincus for $2 bn. Founder and Chief Executive Officer Steve McGill will continue to lead the firm, while Chairman John Lloyd will remain actively involved.
McGill and Lloyd will retain significant shareholdings alongside the firm’s broader employee base. Warburg Pincus will sell its entire equity stake, ending a seven-year investment that began when McGill and Partners was established in 2019.
EQT plans to finance faster organic growth and further international expansion at McGill and Partners. The investment will support recruitment of specialty broking talent across selected markets, additional spending on technology and data, plus further development of digital products.
McGill and Partners will remain independent under the new ownership structure. Management also intends to preserve its entrepreneurial operating model and broad employee ownership, both of which have shaped the business since launch.
- Steve McGill founded the firm in May 2019 alongside a senior team that included John Lloyd, Stephen Cross and Karl Hennessy.
- Warburg Pincus provided cornerstone backing at inception, financing the development of a new specialty insurance and reinsurance brokerage.
The business has expanded substantially during its first seven years. Annual revenue now exceeds $250 mn, with more than 600 employees operating across seven countries and serving over 1,000 insurance and reinsurance clients.
McGill and Partners was created around specialist broking talent, direct market relationships and a digital-first operating structure. The firm focuses on larger and more complex risks for corporate clients, insurers and distribution partners.
Our vision was to build an independent (re)insurance broker defined by its unparalleled expertise, cutting edge technology and an absolute focus on sophisticated clients who wanted an innovative approach to their larger or more complex risk
Steve McGill
He described the $2 bn valuation as a major change from the firm’s position seven years ago, when the business existed only as a new brokerage concept. McGill said the company had expanded by recruiting individual specialists and adding clients rather than relying primarily on acquisitions.
“We are delighted to welcome EQT as our new partner and for our colleagues to retain a significant ownership stake in our firm,” McGill said. He also credited Warburg Pincus for backing the company throughout its development.
EQT sees further expansion potential in specialty insurance broking, especially through technology and international distribution. Matthias Wittkowski, Global Co-Head of Services and Partner at EQT Private Equity, pointed to McGill and Partners’ organic growth and position in specialty broking.
He said EQT plans to invest alongside McGill, Lloyd and the existing management team as the broker expands its platform. Data, analytics and the firm’s internally developed technology infrastructure will remain major areas of spending.
The investor plans to support expansion of McGill and Partners’ US and international client portfolio. The strategy includes building stronger links between global clients and the Lloyd’s and London specialty markets.
Warburg Pincus exits after backing McGill and Partners from inception. James O’Gara, Managing Director and Partner at Warburg Pincus, said the investor had worked with McGill and the leadership team throughout the firm’s development.
O’Gara said the broker created a distinct operating model within specialty insurance brokerage during that period. Warburg Pincus will now realise its investment through the full sale of its stake to EQT.
Technology investment forms a large part of the next ownership phase. McGill and Partners operates on a modern technology stack built around structured data rather than older brokerage systems accumulated through multiple acquisitions.
The infrastructure gives the firm a common architecture for broking data and digital workflows.
Management says this structure allows teams to introduce advanced analytics and AI tools without dealing with many of the technology constraints common across established brokerage platforms.
EQT’s investment will fund further development of those capabilities. McGill and Partners plans to continue building digital tools connecting risk information with insurance capital and distribution across specialty insurance and reinsurance markets.
Employee ownership will also continue after the transaction. McGill and Partners operates under an internal framework called the Contract of Trust, which gives employees greater professional autonomy and treats colleagues as owners of the business.
All employees will receive a financial benefit from the transaction because of the firm’s existing employee ownership model. EQT has also committed to introducing a new Equity Participation Plan covering the workforce.
The plan will give employees an opportunity to participate financially in future growth. A significant portion of the equity pool will remain available for recruitment and expansion of McGill and Partners’ talent base across existing specialty areas and new business segments.
The transaction remains subject to customary conditions and regulatory approvals. The parties expect completion during the first half of 2027.
Following the transaction, EQT X is expected to be 85-90% invested. That calculation includes completed and signed investments, announced public offers where applicable, less expected syndication.
McGill and Partners received financial advice from Evercore and Perella Weinberg, with Freshfields and Unity Advisory also advising on the transaction. Management worked with Mayer Brown and Liberty Corporate Finance.
Ardea Partners acted as exclusive financial adviser to EQT. Clifford Chance provided legal counsel to the private equity firm.
