Goldman Sachs AM to Invest Over $1B in Insurance Broker

Goldman Sachs Asset Management is investing more than $1 billion in insurance broker World Insurance Associates, which acquired retirement plan and wealth advisory Pensionmark Financial Group last year, signaling the continued consolidation of the industry by private equity.

Goldman Sachs will join Charlesbank Capital Partners, which first invested in Iselin, NJ-based World in April 2020, as co-lead equity investors. The investment bank will invest through an equity deal and a “significant” subordinated debt financing, valuing the broker at roughly $3.4 billion.

Since its establishment in 2011, World has grown through a blend of acquisitions and organic initiatives. Charlesbank’s original investment has played a crucial role in this acceleration. With over $500 million in revenue across three main business lines – retail insurance, wholesale insurance, and retirement/wealth advisory – World has risen as a diversified national brokerage platform.

“The major investment Goldman Sachs is making in World will be an accelerant for us, and we intend to take full advantage of it. As we continue to aggressively execute our growth plan, this is a momentous affirmation that our unique, integrated business model is working,” said Rich Eknoian, World CEO and founder.

World’s management team and employee shareholders will remain major investors, alongside Charlesbank and Goldman Sachs. The company now employs more than 2,000 people across 260 offices in the United States, serving over 300,000 clients.

The transaction is expected to close in the fourth quarter. After closing, Charlesbank and Goldman Sachs will have equal representation on the World board of directors.