Broadstreet Announces Ownership Change

By Tamara Parker • Thursday, April 10 15:17 • Permanent Link

Broadstreet, a leading North American insurance brokerage company, has announced a significant change in ownership and partnership structure. Ethos Capital, British Columbia Investment Management Corporation (BCI), and White Mountains Insurance Group, Ltd. will acquire an ownership position in Broadstreet, while Ontario Teachers' Pension Plan will maintain a significant co-control stake and operate in partnership with the Ethos-led investor group.

Broadstreet is known for its co-ownership model, with more than 800 colleagues owning equity in their local core agencies. This approach creates alignment between Broadstreet and its core agency partners around growth and value creation.

Under Ontario Teachers' ownership, Broadstreet has scaled the business and become one of the top private brokerages in North America, with a presence in all 50 U.S. states and all 10 Canadian provinces.

The partnership with Ethos and its co-investors will support Broadstreet's long-term plans, including continued investment in technology and digital transformation.

Ethos Capital, known for investing in seasoned companies with proven business models, expressed its excitement about partnering with Broadstreet to pursue future growth ambitions.

Ontario Teachers' and Broadstreet have worked together since 2012, with Ontario Teachers' taking an active role in supporting the organization's growth and focusing on long-term value creation.

The involvement of Ethos and its co-investors aligns with the vision of growing Broadstreet into the premier insurance brokerage company in North America by capitalizing on sectoral tailwinds and accelerating both organic and inorganic growth efforts.

The transaction was advised by Ardea Partners, RBC Capital Markets, BMO Capital Markets, Latham & Watkins LLP, Torys LLP, Kirkland & Ellis LLP, and Debevoise & Plimpton LLP.

This change in ownership and partnership structure reflects Broadstreet's commitment to sustained growth and value creation, leveraging the collective expertise of its new partners to enhance its capabilities. Today the company's shares have moved -1.6% to a price of $1707.2. Check out the company's full 8-K submission here.

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