A private equity firm says it has established a platform company aimed at acquiring insurance brokerage firms focused on Hispanic insurance customers.
San Francisco-based Genstar Capital, LLC, a middle-market private equity firm, said it has partnered with other insurance executives and Cypress, Calif.-based insurance brokerage firm Westline Corporation to establish Confie Seguros.
Confie Seguros will be a platform company aimed at acquiring other brokerage firms.
Genstar said within the next three years Confie Seguros is expected to build a national distribution company with revenues exceeding $300 million. The focus will be on key markets including, but not limited to, California, Arizona, Florida, Texas, Georgia and Nevada.
Funding for future acquisitions will be provided by a commitment from Genstar and management of $75 million and a bank facility with expected capacity in excess of $200 million.
The new company will be led by John Addeo, chief executive officer. He was president and CEO of Alliant Resources Group, which is now in the hands of Blackstone Group. Before his post with Alliant, he was a senior executive with USI Insurance Services.
Among the executives joining Confie Seguros is Andre Urena as senior vice president of business development. He is the CEO and founder of the Latin American Agents Association.
"The attractive growth dynamics of this market and the new business opportunities will enable us to build the first national insurance brokerage with an emphasis on Hispanic consumers," said Mr. Addeo in a statement.
"Confie Seguros will also position us to bring a variety of other insurance and financial services products to the underserved Hispanic community," said Mr. Addeo.
Westline is a distributor of nonstandard auto insurance products operating from 29 retail branches throughout California. It operates through three brokerage operations: South Coast Auto Insurance, Solo Insurance and Freeway Insurance.
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