The Caisse de dépôt et placement du Québec is investing more than $507 million in British insurer Hyperion Insurance Group Ltd.
The investment will provide new growth equity and liquidity to current shareholders, noted a news release from the Caisse, which will now be a minority shareholder in the company alongside U.S. investment firm General Atlantic. Hyperion management and employees will remain the largest shareholder group.
“Hyperion has a very strong entrepreneurial culture that has consistently yielded superior organic growth,” said Stéphane Etroy, executive vice-president and head of private equity at the Caisse, in the release. “This transaction allows us to support the group in its global growth strategy while at the same time benefiting from a stable and counter-cyclical industry, together with a high-quality partner who shares our long-term vision.”
Hyperion is also launching a debt refinancing and extending its current undrawn revolving credit facility, which will provide an additional $380 million for the company to execute its medium-term growth strategy.
“CDPQ is a fantastic partner to support us on the next leg of our journey,” said David Howden, chief executive officer of Hyperion. “Their strategy to invest based on long-term fundamentals combined with their deep understanding of insurance markets and significant international portfolio mean they will deliver valuable insight to help direct our future plans, whilst remaining supportive of our independence and of our resolute focus on putting our clients at the centre of everything we do.