Sunstar Insurance of Tennessee Completes Recapitalization with BBH Capital Partners

July 7, 2020

Sunstar Insurance Group, LLC has completed a majority recapitalization with BBH Capital Partners (BBHCP), the private equity strategy of Brown Brothers Harriman & Co. (BBH). Terms of the transaction were not disclosed. As part of the transaction, Sunstar management and key employees will remain significant shareholders alongside BBHCP.

Sunstar has grown through organic growth and an active M&A strategy to become one of the largest independent insurance brokers in the U.S., having completed over 25 acquisitions within its core geography. The transaction with BBHCP provides Sunstar with additional capital to maintain its current momentum and accelerate long-term growth, the company said.

According to Casey Bowlin, Sunstar’s chief executive officer, the investment by BBHCP will allow the company to create opportunities for its employees, customers and carrier partners and will further accelerate its organic and M&A growth strategies.

LNC Partners, the private equity firm that previously invested debt and equity capital in Sunstar in 2015, will remain a lender to Sunstar.

Piper Sandler & Co. served as exclusive financial advisor to Sunstar in this transaction, and Bass, Berry & Sims served as the company’s legal counsel. Katten Muchin Rosenman served as legal counsel to BBHCP.

Sunstar is a regional insurance brokerage firm headquartered in Memphis, Tennessee, focused on servicing the insurance needs of businesses and individuals in the Southeast and lower Midwest. Sunstar operates through 10 hub offices, with 18 branch offices in Arkansas, Kansas, Missouri and Tennessee.

BBHCP, the private equity strategy of BBH, provides capital options to growth- oriented lower middle-market companies. BBHCP can act as a control or non-control investor and can structure investments as a combination of equity and subordinated debt as needed. BBHCP typically invests between $30 million and $125 million per platform investment and supports a variety of transactions, including management or leveraged buyouts, growth financings, recapitalizations, buy-and-build strategies and acquisitions.

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