MEMPHIS, TN, June 30, 2020 – BBH Capital Partners (BBHCP), the private equity strategy of Brown Brothers Harriman & Co. (BBH), announced today that it has completed a majority recapitalization of Sunstar Insurance Group, LLC (Sunstar). 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 to become one of the largest independent insurance brokers in the U.S. through industry-leading organic growth and an active M&A strategy, 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.
“We are thrilled to partner with the BBHCP team. Since our founding in 2012, Sunstar has been committed to creating the preeminent insurance broker in the Southeast and lower Midwest,” said Casey Bowlin, Sunstar’s Chief Executive Officer. “The investment by BBHCP will enable us to create new opportunities for our employees, customers and carrier partners and will further accelerate our organic and M&A growth strategies.”
“Casey Bowlin and the Sunstar team have built an impressive insurance brokerage franchise. The BBHCP team looks forward to supporting Sunstar in its future growth initiatives,” said Patrick Kruczek, Managing Director at BBH and Co-Manager of BBHCP.
“With BBHCP as a flexible capital partner, we believe that Sunstar’s best days are ahead, and we are excited to be a part of this next chapter of growth,” added Michael Boylan, Managing Director at BBH and Co-Manager of BBHCP.
LNC Partners, the private equity firm that previously invested debt and equity capital in Sunstar in 2015, will remain a lender to Sunstar. LNC Partners’ Managing Partner, Matt Kelty, commented, “We have been big believers in Sunstar, its management team and its geographic growth strategy and are pleased to continue as a partner going forward.”
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.
About Sunstar Insurance Group, LLC
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. The Sunstar corporate vision is to be recognized as the premier regional insurance agency in its market area by providing exceptional service, professional expertise, trusted advice and competitively priced insurance products to its clients. With over $450 million in premiums placed on behalf of its clients, Sunstar has been ranked as one of the largest Top 100 independent insurance agencies in the U.S. for the past four years. In 2019, industry trade journals designated Sunstar as the 45th largest U.S. independent insurance broker based on revenue. For more information about Sunstar, please visit www.sunstarinsurancegroup.com.
About BBH Capital Partners
BBHCP, the private equity strategy of BBH, provides highly customized capital solutions to growth-oriented lower middle-market companies. BBHCP has the flexibility to 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.
About Brown Brothers Harriman
BBH is a privately held financial institution that has been a thought leader and solutions provider for more than 200 years. The firm serves individuals, families, businesses and institutions in its three business lines: Private Banking, Investment Management and Investor Services. BBH’s culture of accountability fosters deep and lasting relationships built on commitment, adaptability and trust. The company is independent, selective, and specialized by design. BBH operates a global business with 18 locations, including: Beijing, Boston, Charlotte, Chicago, Denver, Dublin, Grand Cayman, Hong Kong, Jersey City, Kraków, London, Luxembourg, Nashville, New York, Philadelphia, Tokyo, Wilmington and Zürich. For more information about BBH, please visit www.bbh.com.
About LNC Partners
LNC Partners is a Northern Virginia-based private equity firm with over $500 million of capital under management that provides debt and equity capital to lower middle-market companies. LNC Partners invests across a broad range of industries and typically provides between $5 million to $30 million of capital to companies in support of buyouts, recapitalizations, refinancing, and acquisition and growth financing. The firm focuses on companies that generate at least $2 million of EBITDA and places an emphasis on management and founder-owned businesses. More information on LNC Partners can be found at www.lnc-partners.com.