King Risk Partners secures recap as Lightyear buys in alongside BHMS

By David Bull

April 23 - (The Insurer) - Fast-growing U.S. retail broker King Risk Partners has secured a growth investment from Lightyear Capital, with its existing private equity backer BHMS Investments rolling a majority of its holding and injecting additional capital, alongside the company’s management team.

In a statement, New York-based Lightyear Capital described King as one of the fastest-growing insurance brokerages in the U.S. and said the investment aligns with its focus on growing companies at the nexus of financial services and technology, healthcare, and business services.

TAG Financial Institutions Group was financial advisor to King on the recap deal, with Sidley Austin legal counsel to BHMS and King, and Davis Polk & Wardwell and Foley & Larner serving as legal counsel to Lightyear.

The statement said that the new investment will support King’s continued expansion into new and existing geographies and markets.

The intermediary was founded in 1974 but has stepped it up its growth trajectory through acquisitions and organically since BHMS invested back in July 2021.

Overall, it has completed over 60 acquisitions to date and offers personal and commercial lines insurance solutions to over 55,000 clients.

It operates from more than 50 offices with a 440-plus team of employees.

In October last year, King highlighted its move up the ranks of the top 100 U.S. insurance brokers into the top 60.

King noted that The Hales Report identified it as the fastest-growth agency within its top 100 in its 2023 report, using the term “mega growth” to describe its expansion.

It added that its revenue had grown 42% in 2023 to feature in the 2024 rankings.

Commenting on the recap, King CEO Chad King said: “Lightyear offers extensive industry knowledge and hands-on operating capabilities for fueling expansion. Working with BHMS has been very rewarding, and I look forward to collaborating with both teams as we explore new avenues for growth together.”

Lightyear managing partner Mark Vassallo added: “Chad and the King management team have built a dynamic insurance brokerage platform with incredible potential for scale. We look forward to leveraging our deep sector expertise and partnering with BHMS to grow the business.”

Trevor Pieri, principal at the PE firm, said the investing in King is consistent with the firm’s long-term thematic focus on insurance distribution.

BHMS managing director Anthony Recine said: “King is a unique company in the insurance brokerage sector, which continues to be an attractive industry for us. We are proud to continue our partnership with the King team and are excited to welcome Lightyear as an investment partner.”

Financial terms of the transaction were not disclosed.