KKR and Caisse de dépôt et placement du Québec have formed a productive partnership over the past decade, teaming to invest in nearly 20 different transactions, according to PitchBook data. Their latest move: The acquisition of USI Insurance Services from Onex in a deal that values the broker and provider of consulting services at $4.3 billion.
The transaction follows a long line of joint KKR-CDPQ investments, many of them in the education and insurance sectors. The two firms’ most recent target prior to USI was Sedgwick Claims Management Services, another insurance business; working with both KKR and Stone Point, CDPQ invested $500 million in SCMS to acquire a significant minority stake.
The partnership between the two firms is designed to target investments with a longer holding period than most private equity deals, so USI could be part of the KKR and CDPQ portfolios for the foreseeable future. Onex had previously acquired the business for a reported $2.3 billion in 2012.