Abu Dhabi Investment Authority Backs Fintech Company at Sizable Valuation

By David G. Barry

A fintech company is valued at $23 billion after raising a new round led by the Abu Dhabi Investment Authority (ADIA).

ADIA took part in Acrisure’s $725 million Series B-2 preferred equity round along with Oak Hill Advisors and existing investor Guggenheim Investments. The new valuation represents a 31% increase over the $17.5 billion it was valued at in March 2021, when it raised $3 billion.

Based in Grand Rapids, Mich., Acrisure provides customers with intelligence-driven financial services solutions for insurance and reinsurance, real estate services, cyber services and asset and wealth management. Founded in 2005, the company operates a top-10 global insurance broker. CEO Greg Williams led the acquisition of Acrisure from private equity firm Genstart Capital in 2016.

The new funding will enable it to pursue additional acquisitions, grow its tech-enabled solutions, increase marketing and brand awareness, and invest in human and technological infrastructure. Acrisure in 2021 closed more than 130 acquisitions and achieved 45.9% total revenue growth. Over the past eight years, its revenue has grown from $38 million to $3.5 billion.

In a statement, Williams said that the transaction “reaffirms how the market, and our partners, value the strength of our performance and trajectory for future growth.”

Hamad Shahwan Aldhaheri, executive director, private equities department, ADIA, also in a prepared statement that Acrisure “has grown at a rapid pace to become one of the world’s leading insurance brokers, and our investment aims to support the company as it continues to execute on its strategy.” He added that the investment also adds to ADIA’s “extensive portfolio” of investments across the insurance industry value chain – one which he described as a “large and attractive market backed by long-term growth trends.”

ADIA was ranked as the fourth-largest sovereign wealth fund in the world in 2021, with just under $650 billion in assets. It recently took part in the $14 billion acquisition of McAfee Corp. along with Advent International, Permira, Crosspoint Capital Partners, L.P., Canada Pension Plan Investment Board and GIC Private Limited.