NEW YORK, July 1, 2024 – Reverence Capital Partners, a leading private equity firm specializing in financial services investments, has announced a significant expansion of its portfolio. The firm has reached an agreement to acquire a majority stake in Sunstar Insurance Group, LLC (Sunstar), a prominent independent retail insurance broker. While the specific financial terms of this transaction remain undisclosed, the acquisition signals a strong move by Reverence Capital Partners to bolster its presence in the insurance sector.
Sunstar Insurance Group, established in 2012 and headquartered in Memphis, Tennessee, operates as a robust retail insurance brokerage platform. Focusing primarily on the Southeast and Midwest regions of the United States, Sunstar employs an effective integrated hub-and-spoke model. This model enables the company to deliver a comprehensive suite of insurance brokerage services, including Commercial P&C, Personal P&C, and Employee Benefits. Sunstar caters to a diverse clientele of small and medium-sized businesses, as well as individual clients. Impressively, Sunstar manages over $1.2 billion in premiums, securing its position as the 33rd largest independent insurance agency in the U.S. The company has demonstrated remarkable growth in recent years, fueled by consistent organic expansion and strategic tuck-in acquisitions, positioning it for continued success and further growth acceleration.
The leadership team at Sunstar will remain unchanged, ensuring continuity and stability. Casey Bowlin, the founder and CEO, alongside Greg Lottes, President and COO, Chris Parcell, CFO, and Nick Colicchio, Vice President of Carrier Relationships and Strategic Partnerships, will continue to steer the company. This experienced management team, supported by respected regional industry veterans, brings decades of collective insurance brokerage expertise. Demonstrating their confidence in the future partnership, the management team and key personnel will reinvest a substantial portion of their transaction proceeds and retain a significant minority stake in Sunstar.
Casey Bowlin expressed enthusiasm about the partnership, stating, “I am delighted to now be partnered with such a successful and prominent firm as Reverence Capital Partners. With their ongoing support and equity capital backing, I am quite confident that the future growth curve of Sunstar will continue to be upwardly remarkable.”
Milton Berlinski, Managing Partner at Reverence Capital Partners, also commented on the acquisition, highlighting Sunstar’s strengths: “Casey and his team have built a differentiated and rapidly growing platform thanks to exceptional leadership, a unified and team-oriented culture, and a disciplined approach to M&A. We are thrilled to be partnering with such a high caliber management team and look forward to providing the necessary capital and support to execute on Sunstar’s plan of accelerated organic and inorganic growth.”
Reverence Capital Partners’ investment in Sunstar underscores the firm’s strategic focus on the crucial role of distribution within the insurance value chain. This acquisition aligns with Reverence Capital Partners’ broader investment strategy in the financial services sector.
Piper Sandler & Co. acted as the financial advisor to Sunstar, while Bass, Berry & Sims PLC served as their legal counsel. Kirkland & Ellis LLP provided legal counsel to Reverence Capital Partners for this transaction.
About Reverence Capital Partners
Reverence Capital Partners is a private investment firm with a focus on thematic investing across three core strategies: Financial Services-Focused Private Equity, Opportunistic Structured Credit, and Real Estate Solutions. Managing over $10 billion in Assets Under Management (AUM), Reverence Capital Partners is dedicated to investing in leading global financial services businesses. Founded in 2013 by Milton Berlinski, Peter Aberg, and Alex Chulack, the firm’s partners bring over 100 years of combined experience in advising and investing within the financial services industry. Their extensive expertise spans a wide array of financial sectors, positioning Reverence Capital Partners as a knowledgeable and strategic investor in the financial services landscape.
