PCF INSURANCE SERVICES SECURES $400 MILLION IN INCREMENTAL FINANCING AS PART OF NEW TERM LOAN

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PCF Insurance Services has closed $400 million in incremental debt financing led by Blue Owl. The financing was upsized from $300 million in response to strong lender demand. The proceeds will be used to fund the expansion of the Office Partner network and support mergers and acquisitions.

LEHI, Utah, Aug. 1, 2023 /PRNewswire/ -- PCF Insurance Services ("PCF"), a top 20 U.S. insurance brokerage, announced today that it has closed $400 million in incremental debt financing led by Blue Owl, a global alternative asset manager that acted as lead arranger and admin agent. The financing was upsized from $300 million to $400 million in response to strong lender demand from new and existing lenders.

"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," said Felix Morgan, Chief Financial Officer and Chief Operating Officer for PCF Insurance. "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 deal included incremental term debt to fund near term acquisitions and a delayed draw term loan to support mergers and acquisitions (M&A). The financing is pari passu with the existing senior facilities and will mature concurrently with existing facilities. PCF Insurance last accessed the capital markets in February 2023 when it secured a $500 million preferred equity investment co-led by Carlyle's Global Credit platform and private equity firm HGGC. Blue Owl and Crescent Capital, both of which have existing minority equity stakes in the business, also participated in the preferred equity transaction.

"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," said Lukas Spiss, Managing Director at Blue Owl Capital. "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 $700 million, while maintaining organic growth of 10%. Fueled by its proven practices, data-driven strategies, entrepreneurial spirit and the strong local relationships of its Office Partners, PCF Insurance leverages the industry knowledge and experience of its more than 3,100 employees across 38 states to provide its highly diversified suite of risk management, benefits design, and insurance brokerage services.

About PCF Insurance Services
A top 20 U.S. broker headquartered in Lehi, Utah, PCF Insurance Services is a leading full-service consultant and insurance brokerage firm offering a broad array of commercial, life and health, employee benefits, and workers' compensation solutions. Propelled by its people, PCF Insurance's office-centric operating model and entrepreneurial environment support its tremendous growth profile, offering partner offices alignment through equity ownership, significant leadership incentives, and resources. Ranked #20 on Business Insurance's 2023 Top 100 Brokers and #13 on Insurance Journal's 2022 Top Property/Casualty Agencies, PCF Insurance is a notable leader in the insurance space, with 3,100 employees across the U.S. Learn more at pcfins.com.

About Blue Owl

Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives. With over $144 billion in assets under management¹, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional and individual investors differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.

Together with over 570 experienced professionals across 10 offices globally, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit blueowl.com.

¹As of March 31, 2023

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SOURCE PCF Insurance Services

FAQ

What is the name of the insurance brokerage that closed the debt financing?

The insurance brokerage that closed the debt financing is PCF Insurance Services.

Who led the $400 million debt financing?

Blue Owl, a global alternative asset manager, led the $400 million debt financing.

What will the financing proceeds be used for?

The financing proceeds will be used to further fund the expansion of the Office Partner network and support mergers and acquisitions.

Who participated in the preferred equity transaction in February 2023?

Carlyle's Global Credit platform, private equity firm HGGC, Blue Owl, and Crescent Capital participated in the preferred equity transaction in February 2023.

What was the revenue of PCF Insurance in 2022?

PCF Insurance had a revenue of over $700 million in 2022.