Altas Partners, a North American private equity firm based in Greenwich, has made a significant strategic investment in Sedgwick, a leading global provider of claims management, loss adjusting, and technology-enabled business solutions. This investment, alongside continued investment from Carlyle and Stone Point Capital, values Sedgwick at an impressive $13.2 billion.
Altas Partners’ $1 Billion Investment in Sedgwick
Altas Partners’ commitment of $1 billion signifies a strong belief in Sedgwick’s growth potential and aligns with the firm’s strategy of investing in high-quality businesses with durable growth prospects. This investment marks a significant milestone for Sedgwick, reflecting the company’s success and leadership in the claims management industry. The transaction increases Sedgwick’s enterprise value from $6.7 billion in 2018 when Carlyle initially invested.
A Collaborative Partnership for Future Growth
This strategic partnership brings together a powerful combination of financial expertise and industry knowledge. Carlyle will retain its controlling position, working in partnership with the investor group and Sedgwick’s management team. Stone Point Capital also continues its commitment to Sedgwick. The collective expertise of these firms will support Sedgwick’s continued expansion and innovation in the claims management sector. Sedgwick CEO Mike Arbour emphasized the strategic alignment of the partnership, highlighting Altas Partners’ understanding of the challenges clients face in today’s competitive landscape.
Sedgwick’s Continued Leadership in Claims Management
Sedgwick handles millions of claims annually, ranging from catastrophes and accidents to absence requests. In 2023 alone, the company processed over eight million claims and managed claim payments exceeding $33 billion. Sedgwick remains committed to its core values of claims handling excellence, leveraging data science, and driving technological innovation. The company will continue to operate as an independent, private entity, focusing on delivering exceptional service to its global clientele.
Altas Partners: A History of Strategic Investments
Altas Partners’ investment philosophy focuses on acquiring substantial stakes in select companies with exceptional growth potential. The firm’s targeted approach and deep industry expertise position them as a preferred partner for management teams and founders. With offices in Toronto and New York, Altas Partners manages approximately $10 billion for institutional and family office investors globally. Paul Emery, Partner at Altas Partners, emphasized Sedgwick’s unique qualities, stating that the company embodies the rare combination of quality, durability, and clear growth potential that Altas seeks in its investments.
A Promising Future for Sedgwick
The investment from Altas Partners, coupled with the continued support of Carlyle and Stone Point Capital, positions Sedgwick for a bright future. This strategic partnership will fuel further innovation, global expansion, and the development of comprehensive service capabilities. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. This collaboration strengthens Sedgwick’s position as a leader in the claims management industry and reinforces its commitment to providing exceptional service to clients worldwide. Jim Carey, Co-CEO of Stone Point Capital, affirmed their long-standing relationship with Sedgwick’s leadership and expressed enthusiasm for the continued partnership. He highlighted Sedgwick’s leading role in the risk, loss adjusting, and claims management industries, underscoring Stone Point’s commitment to supporting the company’s future growth.
