The Carlyle Group (Nasdaq: CG) is continuing its investment streak in the middle market with the acquisition of a majority stake in insurance brokers JenCap Holdings and the assets of Wholesale Trading Co-Op Insurance Services. Carlyle Global Financial Services Partners II will provide equity capital for the transactions; financial terms of the deals have not been disclosed.
This acquisition will result in New York-based JenCap consolidating its specialty insurance distribution and program management businesses, Carlyle says. Wholesale Trading Co-Op Insurance will be rebranded as Wholesale Trading Insurance Services, with office in New York, Atlanta, Georgia, San Francisco, California and Princeton, New Jersey.
The company’s current President and CEO John Jennings will take on the same roles at JenCap, while founding member and co-head of Wholesale Trading’s casualty insurance practice Kristopher Bauer, will now serve as president of Wholesale Trading.
This acquisition is the just the latest movement from Carlyle in the middle market. In February, Carlyle raised its second middle market buyout fund, the Carlyle Equity Opportunity Fund II (CEOF II). The $2.4 billion investment vehicle is twice as large as Carlyle first middle-market fund, which it launched in 2012 with $1.1 billion in commitments.
In January, Carlyle partnered with health care focused investment bank and consulting firm Bourne Partners to create Phoenix Therapeutics, which will scope out targets pharmaceutical space. During 2015, Carlyle purchased candle maker Blyth Inc.; teamed up with Chertoff Group to back cybersecurity provider Coalfire Systems; and also announced plans to buy the Rhode Island State Energy Center.