This infusion of capital from Harvest Partners LP and continued support from Oak Hill and Carlyle marks a pivotal moment for Galway. The company currently manages over $7 billion in insurance premiums and boasts a workforce of over 3,100 professionals across more than 100 offices nationwide. EPIC and JenCap stand as industry leaders, ranking among the top retail and specialty distribution brokers according to Business Insurance magazine.
John Hahn, Co-founder and Chairman of Galway, expressed his enthusiasm about the partnership: “We are thrilled to welcome Harvest Partners LP. Having them join Oak Hill and Carlyle provides us with an exceptional investor group that believes in our vision for building a unique and diversified insurance distribution business. This investment allows us to be proactive in the current market, fostering growth and expansion across Galway’s specialized strategies in retail brokerage, risk management, wholesale brokerage, program administration, and underwriting management.”
Steve Denton, CEO of EPIC, highlighted the growth prospects enabled by this transaction: “The commitment from Harvest Partners LP, Oak Hill, and Carlyle empowers our retail platform to maintain exponential growth across all facets of our operations. We are now positioned to deliver comprehensive, nationwide solutions through industry-focused practices in employee benefits and property & casualty, supported by dedicated resources in risk management, small commercial, and private clients.”
John Jennings, Co-founder and CEO of JenCap, underscored the strategic rationale behind joining the Galway platform: “This transaction validates our decision to become part of Galway. The holding company’s strong business model is highly attractive to investors like Harvest Partners LP, enabling us to pursue ambitious growth objectives and deepen our specialty expertise across our platform for the benefit of our twelve thousand retail clients.”
Jay Wilkins, COO and Partner at Harvest Partners LP, conveyed his confidence in Galway’s leadership and future trajectory: “John, Steve, and John, with the backing of Oak Hill and Carlyle, have built an outstanding business. Harvest Partners LP is excited to support their continued aggressive growth.” Steve Carlson, Partner at Harvest Partners LP, added, “This is an opportune time to invest in such a high-caliber team to capitalize on the positive trends within the insurance distribution sector.”
Steve Puccinelli, Managing Partner of Oak Hill, reflected on the successful partnership to date: “Since our initial investment in EPIC in 2017, John Hahn and his exceptional team have more than tripled the business. They have significantly expanded EPIC’s unique platform and successfully integrated it with JenCap to form Galway earlier this year. We are delighted to continue our partnership with the Galway management team, alongside Harvest Partners LP and Carlyle, to develop the leading growth platform in insurance distribution.”
John Redett, Managing Director and Head of Carlyle’s Global Financial Services group, affirmed their long-term commitment: “We are proud of our enduring partnership with John Hahn and the management team. They have achieved remarkable growth since our initial investment in 2013, and we believe Galway is well-positioned to leverage numerous strategic opportunities moving forward. The addition of Harvest Partners LP and ongoing investment from Carlyle, Oak Hill Capital, and management reinforces our established partnership and aligns the interests of all stakeholders.”
The equity investment will be sourced from funds managed by Harvest Partners LP, Oak Hill Partners Fund V, and Carlyle Global Financial Services Partners II and III.
The transaction is anticipated to close by the end of 2020, pending standard closing conditions, including regulatory approvals.
Galway was advised by Evercore Group LLC, Goldman Sachs & Co LLC, and Morgan Stanley & Co LLC as financial advisors, and Weil, Gotshal & Manges LLP as legal counsel to Oak Hill and Galway. Wachtell, Lipton, Rosen & Katz served as legal counsel to Carlyle, and Ropes & Gray LLP acted as legal counsel for Harvest Partners LP.
