PIB Group, one of Europe’s fastest-growing insurance intermediaries, has stepped back from recent takeover discussions and instead secured £400 million in debt financing to support its next phase of expansion across the continent, the company said Thursday.
The move effectively ends a protracted strategic review by private equity sponsors Apax Partners and The Carlyle Group, which had drawn significant interest from trade buyers earlier this year. Gallagher was widely seen as the frontrunner to acquire PIB, with talks reportedly reaching an advanced stage, but a deal ultimately failed to materialize. Sources had indicated that the discussions were at the 13x multiple level.
“This finance provides PIB Group with significant capacity to fuel our planned growth as an insurance broker focused on European markets,” chief executive Brendan McManus said in a statement. “Our people, proposition and service are best in class and we continue to bring to life our ambition to be a unique pan-European insurance distribution platform.”
The announcement comes amid continued consolidation in the insurance broking sector, with strategic and private equity investors competing for scale and geographic reach. While PIB’s backers initially pursued a private equity buyer via an Evercore-led process in early 2024, the muted reception prompted a pivot toward trade suitors. Gallagher and Brown & Brown (Europe) were among those named as potential acquirers, with the former said to be “80% done” at one point, according to industry reports.
Instead, the group is recommitting to growth under its current ownership structure. Apax acquired a majority stake in PIB from Carlyle in 2021, although Carlyle retained a minority interest. At the time, Apax said it planned to accelerate PIB’s M&A strategy, with a particular focus on fragmented markets across Europe.
“Having collaborated to establish PIB Group in core attractive geographies in Europe, we look forward to investing further to drive future growth and value creation,” said Ashish Karandikar, partner at Apax, and Jim Burr, co-head of global financial services at Carlyle, in a joint statement.
PIB’s preference for remaining private is likely driven in part by its ability to continue acquiring at pace. The broker has been one of the most active consolidators in the UK and Europe since its inception in 2015, with over 70 acquisitions under its belt, including several in Spain, Ireland, the Netherlands and Germany.
The group reported adjusted EBITDA of £74 million in the first half of its 2024 financial year (ending October), a 9% increase from the prior-year period. Revenue over the same window reached £234 million, up 6% year-on-year.
Apax has a track record of building platform brokers through buy-and-build strategies. Past investments include Hub International, Assured Partners, and Genex – all of which were exited at significant multiples. In PIB, the private equity firm sees a comparable opportunity to establish a cross-border intermediary of scale with embedded specialty expertise.
In the short term, the firm’s new debt facilities are expected to support ongoing M&A and internal development across its European operations. Banking sources suggest the financing package was well received by lenders, reflecting confidence in PIB’s cash flow and acquisition track record.
Although a sale is now off the table, industry observers believe PIB remains a likely M&A target in the medium term, particularly if it continues to scale in continental Europe. But for now, the group is doubling down on organic and acquisitive growth with a clear focus: building one of Europe’s leading independent brokers.
