PCF Insurance Services Secures $400M Financing as Part of New Loan

PCF Insurance Services said today that it closed $400 million in incremental debt financing led by Blue Owl, a global alternative asset manager that acted as lead arranger and admin agent.

The financing was upsized from $300 million to $400 million in response to strong lender demand from new and existing lenders, said the top 20 U.S. insurance brokerage out of Utah.

“The oversubscription in the financing and upsize in deal speaks to the strength of PCF and the confidence that our investors have in our bright future and ability to deliver on our long-term, strategic growth objectives,” said Felix Morgan, chief financial officer and chief operating officer for PCF Insurance. “We will use the financing proceeds to further fund the expansion of our Office Partner network, as we look to accelerate execution of our M&A strategy with the support of our great partner investors.”

PCF Insurance ranked No. 13 on Insurance Journal’s 2022 Top Property/Casualty Agencies.

Recently the M&A database from OPTIS Partners indicated PCF, historically one of the most active buyers, cooled during the first half of 2023.

In 2022, PCF Insurance said it completed nearly 100 partner transactions and increased its revenue to over $700 million, while maintaining organic growth of 10%. The brokerage has more than 3,100 employees in 38 states.

The deal included incremental term debt to fund near term acquisitions and a delayed draw term loan to support mergers and acquisitions (M&A). PCF Insurance said it last accessed the capital markets in February 2023 when it secured a $500 million preferred equity investment co-led by Carlyle’s Global Credit platform and private equity firm HGGC. Blue Owl and Crescent Capital, both of which have existing minority equity stakes in the business, also participated in the preferred equity transaction.