Private equity firm Thomas H. Lee Partners LP (THL) has partnered with insurance-industry veterans Bret Quigley and Adam Meyerowitz to form Prime Risk Partners.
Atlanta-based Prime Risk will invest in insurance agencies to build a national insurance distribution firm. Initial platform acquisitions will most likely be companies with between $10 million and $125 million in revenue, according to a source, followed by add-on acquisitions within the same regions. THL plans to invest up to $200 million in equity capital to support the initiative.
Quigley was most recently vice chairman at Beecher Carlson, an insurance brokerage firm that was acquired by Brown & Brown in July 2013. Meyerowitz was previously at Beecher Carlson as senior vice president and general counsel.
THL, headquartered in Boston, invests in consumer, health care, media, information services and business and financial services businesses in North America. The firm, founded in 1974, has raised about $20 billion in equity capital. The firm, in January, bought 1-800-Contacts. In May 2013, THL picked up CTI Foods, in partnership with a Goldman Sachs affiliate. The insurance industry has continued consolidating, with recent deals by Marsh & McLennan Agency LLC, which bought Visicor earlier in May, and United Insurance Holdings Corp.'s (Nasdaq: UIHC) offer for Sunshine State Insurance Co. For more, see "Racking Up Regional Insurers."