Carlyle Group Leads $150 Million Investment in Alera Group to Fund Acquisitions

September 4, 2020

New York-based investment firm The Carlyle Group led a $150 million investment for Deerfield, Illinois-based Alera Group, the property/casualty, employee benefits insurance broker that is privately-held company and backed by Genstar Capital and Alera employees.

Alera plans to use proceeds from the investment to support ongoing growth and acquisition activities. Since inception in 2017, Alera has been one of the fastest growing companies in the insurance brokerage industry, according to Alan Levitz, Alera’s chief executive officer.

Alera opened its doors in 2017 opens its doors with more than 20,00 clients, $158 million in annual revenues and 750 employees in 40 offices across 15 states. It was formed by 24 independent insurance firms with investment from Genstar Capital, a middle market private equity firm, and brokerage assistance from consulting and investment banking firm Marsh, Berry & Co. Today Alera has more than 100 locations and 1,800 employees.

Carlyle’s Global Credit segment made the investment with capital from its $2.4 billion Credit Opportunities Fund that closed last year. Alex Popov, Carlyle’s co-head of Illiquid Credit Strategies, said Carlyle leveraged its expertise in insurance brokerage and an existing relationship with Genstar to “structure a customized financing solution for Alera in an otherwise challenging economic environment.”

“This preferred investment represents a significant next step in Alera’s growth trajectory, and we are excited about adding Carlyle’s expertise and capital to the organization,” added David Graham, director of Debt Capital Markets at Genstar,

Topics Mergers

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