Onex Partners to acquire Integrated Specialty Coverages

Executive Summary

• Onex Partners Opportunities Fund has agreed to acquire Integrated Specialty Coverages (ISC), a technology-enabled insurance platform, from KKR.
• The acquisition involves co-investment from the Public Sector Pension Investment Board, Ardian, and other institutional equity partners.
• The transaction is expected to close later this year, subject to customary closing conditions.

Key Details

• Acquirer: Onex Partners Opportunities Fund (a subsidiary of Onex Corp.).
• Target: Integrated Specialty Coverages (ISC), headquartered in Carlsbad, Calif.
• Seller: KKR (which will exit its investment in the company).
• Co-Investors: Public Sector Pension Investment Board, Ardian (via co-investment strategy), and several other leading institutional equity partners.
• Post-Transaction Ownership: ISC's management team and employees will remain significant shareholders following the transaction.
• Target Business Description: ISC is a leading, multiline program administrator dedicated to underwriting excellence and client service. It operates an end-to-end insurance platform powered by proprietary data analytics, connecting a broad network of insurance markets and distribution channels.
• Strategic Rationale: The investment aligns with Onex Partners' core focus on the insurance sector, specifically targeting founder-led businesses across the property and casualty insurance value chain.
• Advisers:
  • Financial Adviser: Perella Weinberg (for Onex Partners).
  • Legal Counsel: Willkie Farr & Gallagher LLP (for Onex Partners).
• Closing Timeline: Expected to close later this year.

Notable Quotes

• Adam Cobourn, Managing Director at Onex Partners: "ISC combines all the elements we consider to be markers of success in an underwriting and distribution platform, including a disciplined, data-driven approach, broad and deep relationships with insurance carriers and brokers, and a best-in-class technology platform that enables superior underwriting results, client experience and cost-efficiency."
• Matt Grossberg, Founder and CEO of ISC: "We are excited to join forces with Onex Partners. Onex's deep expertise and network in the P&C sector brings us access to a unique ecosystem of resources and relationships. This partnership will strengthen our ability to innovate and deliver cutting-edge insurance solutions across our core business lines, while also enabling us to pursue a broad range of new growth opportunities."