Global insurance broker Hub International Limited has entered into an agreement with private equity firm Leonard Green & Partners (LGP) for an expected “substantial” minority investment from funds managed by LGP.

Terms of the financial transaction, which is expected to close in the third quarter, were not disclosed

HUB has a current total enterprise valuation of $23 billion, the largest value on record for a private insurance broker, according to HUB, adding that it expects to explore bringing on additional minority investors in the coming months.

Chicago-based HUB said its valuation has grown from $4.4 billion when private equity firm Hellman & Friedman initially invested in the broker, to $10 billion in 2018 with a minority investment from Altas Partners, to its current valuation.

“Despite the headwinds of the pandemic, interest rate hikes, and a global economic downturn, HUB has demonstrated its ability to persevere and excel. In the last 4.5, years we’ve delivered a 2.5 times ROI,” said Marc Cohen, President and CEO, Hub International.

The proceeds will be used to repurchase equity interests from existing equity holders. Hellman & Friedman will retain a controlling interest in HUB, while the company’s management team will continue to hold a significant equity position.

Altas will remain a significant minority shareholder and continue to be members of the board. LGP will be joining the board as well.