On January 23, HGGC announced its decision to sell a minority stake in Davies Group Limited to Alberta Investment Management Corporation. While financial terms were not announced, the investment in Davies stands to diversify and strengthen the shareholder’s base. HGGC will hold the majority ownership stake in the company while Davies seeks to drive organic growth and expansion in the near future.
HGGC took a collaborative approach to ownership when it invested in January 2017. This provided Davies with financial and strategic resources to continue its strong organic path.
In the less than two years since HGGC’s investment, Davies Group has more than doubled annual revenues to $150 million. Davies acquired and integrated 11 complementary businesses, including five in 2018, and invested in new technology. In 2018, Davies impressively added more than 100 new accounts from existing and new clients to its growing platform.
According to John Block, principal at HGGC, from the beginning, HGGC’s investment in Davies Group was “emblematic” of its “philosophy of acquiring compelling platforms and providing them with the resources and value-added expertise to drive growth.”
HGGC mentioned in the press release its pride in partnering with Davies Group CEO Dan Saulter and his team. HGGC also demonstrated its excitement for the future, saying that it looks “forward to partnering with AIMCo to sustain and elevate this success.”
Saulter seems pleased with HGGC as an investment partner. “The team’s strategic guidance and support has been invaluable,” he said. Davies Group is also excited to begin working with AIMCo, who it considers not only to “be a source of long-term capital” but also “a value-added partner” as Davies Group establishes itself “as the leading operations, consulting, and digital partner in [its] chosen verticals.”
AIMCo has also shown its support and excitement regarding Davies Group’s next steps. “We believe the company has a strong runway ahead, along with an excellent leadership team and investor partners to capitalize on growth opportunities,” said James Ridout, a director of the private equity group at AIMCo.
Based in Palo Alto, California, HGGC is a leading middle-market private equity firm with $4.4 billion in cumulative capital commitments. The firm sets itself apart with its unique “Advantaged Investing” approach, which it uses to source and acquire scalable businesses through relationships with management teams, founders, and sponsors who reinvest alongside HGGC, creating a strong alignment of interests.
About Davies Group Limited
Davies Group is a multi-award winning operations management, consulting, and digital solutions provider to global businesses and organizations in highly regulated markets. Davies is headquartered in London with a team that stretches across the UK, Ireland, Bermuda, the United States, and Canada. The company has more than 400 clients for whom it provides claims solutions, insurance services, and customer experience programs.
About Alberta Investment Management Corporation (AIMCo)
Alberta Investment Management Corporation, or AIMCo, is one of Canada’s largest and most diversified institutional managers with assets under management over C$108 billion. AIMCo was founded on January 1, 2008, and its head office is located in Edmonton, Alberta. The company invests globally on behalf of 32 endowment, pension, and government fund clients in Alberta.