Carlyle Group leads $150m investment in US broker Alera

Illinois-based insurance brokerage Alera Group has secured a $150 million preferred investment led by private equity firm Carlyle Group's global credit platform to drive organic growth and strategic acquisitions. The company plans to use proceeds from the investment to...

...support its growth and acquisition activities.

Founded in 2017, Alera is a privately-held company backed by Genstar Capital. It offers employee benefits, property and casualty, retirement services and wealth management across the US.

Alex Popov, Carlyle’s co-head of Illiquid credit strategies and head of Carlyle’s credit opportunities team, said: “Alera is one of the fastest growing insurance brokers in the country and we are pleased to provide the long-term capital it needs to continue building a best-in-class platform. We leveraged our expertise in insurance brokerage and an existing relationship with Genstar to structure a customised financing solution for Alera in an otherwise challenging economic environment.”

Alan Levitz, Alera’s chief executive officer, said: “Carlyle’s financial strength, experience in our industry and reputation for being a trusted partner to the companies in which it invests made them a logical choice for us as we added capital to continue the growth of our business. We look forward to working with Carlyle as we continue to create value for our clients, our employees and both our internal and external investors.”

David Graham, director of Debt Capital Markets at Genstar, added: “This preferred investment represents a significant next step in Alera’s growth trajectory, and we are excited about adding Carlyle’s expertise and capital to the organization. This transaction will be invaluable to Alan and the Alera team as they continue to drive organic growth and evaluate strategic acquisitions.”