• Investment Year:2009, 2017
  • Status:Current
  • Stage:
  • HQ:Fort Worth, TX

Higginbotham

Visit Website

Higginbotham & Associates is the largest privately held middle-market insurance agency in Texas based on revenues and the 21st largest commercial broker in the U.S. based on the 2020 Business Insurance rankings.

Higginbotham, which is led by CEO Rusty Reid, offers P&C and employee benefits insurance coverages on behalf of middle-market clients.

INDUSTRY KNOWLEDGE & NETWORK

Stone Point has been an active investor in the insurance distribution sector for over eighteen years, including a number of successful investments in various sub-sectors of the industry, including several investments in retail insurance brokers, wholesale brokers and program administrators. Stone Point originally met the Higginbotham management team in 2007 when the company transitioned from an employee stock ownership plan (“ESOP”) to corporate ownership and maintained an active dialogue, ultimately culminating in Stone Point’s original investment in the company in 2009.

INTRODUCTION TO CLIENTS & PARTNERS

Stone Point introduced Higginbotham to PURE, to facilitate a distribution relationship for high-net worth products. Additionally, Stone Point has helped Higginbotham develop a strong institutional-investor following and broadened the company’s access to the capital markets.

M&A SOURCING

Stone Point has supported Higginbotham’s strategy of pursuing acquisitions to broaden its geographic reach and scale while complementing its strong organic revenue growth. Higginbotham has successfully acquired and integrated over 35 partnerships across Texas and Oklahoma since Stone Point’s initial investment in 2009.

BUSINESS & PRODUCT DEVELOPMENT

Stone Point has been a valuable partner to Higginbotham and strengthened its market position through introductions to senior business leaders in the state of Texas.

EXECUTIVE RECRUITING & ALIGNMENT

Stone Point worked extensively with management to structure a minority stake investment that fosters Higginbotham’s strong culture predicated on independence and employee ownership. Stone Point re-energized Higginbotham’s management team with several incentive plans and management / employee co-investment structure.

CAPITAL RAISING & STRUCTURING

Stone Point worked with management to complete several debt recapitalizations that generated over $100 million of distributions to shareholders.

I’m proud to call Stone Point my partner. We’ve enjoyed a great relationship since December 2009. Their expertise with the capital markets has been invaluable resource in the deployment of our partner strategy. We are completely aligned as we continue our quest for Higginbotham to be the Best Broker in Texas and beyond!
Rusty Reid, Chairman & CEO

Investments highlighted or discussed in this selection have been selected to illustrate SPC’s investment approach and/or market outlook and are not intended to be an indicator of past or future performance. Each investment discussed in this selection has been selected solely for this purpose and has not been selected on the basis of performance or any performance-related criteria. The investments discussed herein do not represent an entire portfolio and in the aggregate may only represent a small percentage of holdings. Nothing in this presentation shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced herein.