Global private equity firm TA Associates announced that it has signed a definitive agreement to make a strategic growth investment in Honan Insurance Group (Honan), an Australia-based commercial insurance broker.
Financial terms of the investment were not disclosed. The transaction is expected to close in the second half of 2020, pending customary regulatory approvals and closing conditions.
Founded in 1964, Honan provides a full range of commercial insurance, risk and financial solutions to businesses across a wide range of industries, including financial institutions, healthcare, professional services, technology, biotech & life science, logistics, construction, food & beverages, and mining & energy.
Since its founding, Honan has expanded from Australia-wide to New Zealand, Singapore and Malaysia. The company claims that it has grown revenue at a CAGR of approximately 17 per cent over the last 19 years.
The investment from TA Associates will support Honan for its further growth both in the domestic Australian market and overseas, according to Damien Honan, Group CEO and Executive Director of Honan Insurance Group.
“With a commitment to providing tailored recommendations and high-quality customer service, Honan has grown significantly over the past few years,” said Andrew Tay, a Senior Vice President at TA Associates.
Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services, TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 500 companies around the world.
Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in high-quality growth companies.
The PE firm has raised $33.5 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $2 billion per year.
The US-based private equity firm typically invests $75-500 million in its portfolio companies. Last May, TA Associates closed its 13th flagship fund at a hard cap of $8.5 billion. The TA XIII fund was launched in the first quarter of 2019 and exceeded its target of $7.5 billion.
Its portfolio in insurance sector including Asurion, a provider of non-network enhanced services for the wireless, communications and retail industries; CIPRÉS, an insurance wholesale broker specializing in complementary health and death & disability insurance for self-employed individuals and small and medium enterprises; Netrisk, an online insurance brokerage company in Hungary; Odealim Group; a French insurance brokerage firm for real estate professionals; Professional Warranty Service Corporation; and Söderberg & Partners, one of Sweden’s leading independent advisors and providers of insurance and other financial products.