Partners Group, a global private markets firm, announced that an AI transformation program at portfolio company Foundation Risk Partners (FRP) has driven a 120 basis point (bps) increase in EBITDA margin, representing $10 million in financial impact. The program was delivered in collaboration with Version 1, another Partners Group portfolio company specializing in AI-first digital transformation services.
FRP, one of the fastest-growing insurance brokerages in the U.S., was founded in 2017 and now employs over 3,000 people across 68 locations. The company built a clean, proprietary policy-level dataset that served as the foundation for the AI initiative. Version 1's AI Labs developed two agentic AI solutions: one reduces the average policy processing cycle for new clients by 94%, leading to a doubling in close rates, and the other automates the human-intensive policy checking task. The program, delivered by a seven-person team augmented by Version 1, took the first use case from concept to production in just 14 weeks.
This collaboration highlights how private equity firms can drive value creation by fostering synergies among their portfolio companies. Partners Group acquired both FRP and Version 1 in 2022, recognizing tailwinds in the U.S. insurance brokerage sector and the growing demand for AI-first digital transformation services in the UK and Ireland. Since acquisition, both companies have doubled their revenues.
Wolf Scheider, Head of Private Equity at Partners Group, said: "We have delivered synergies within our own portfolio to create tangible value, in this case pairing a US insurance brokerage with an AI technology partner in the UK and Ireland. Through this, we have turned a clean dataset into USD 10 million EBITDA uplift and real, measurable growth. We continue to look for opportunities to leverage AI expertise across our portfolio companies."
The implications of this announcement are significant for the private equity industry. It demonstrates that AI can be a powerful tool for operational improvement, and that portfolio companies can benefit from shared expertise and resources. For investors, this approach can lead to enhanced returns and faster value creation. For the insurance brokerage industry, it shows how AI can streamline operations and improve efficiency, potentially setting a new standard for policy processing.
Partners Group's success with this initiative may encourage other private equity firms to explore similar cross-portfolio collaborations, particularly in AI and technology. The firm's ability to identify and execute such synergies could become a competitive advantage in the increasingly crowded private markets landscape.
For more information on Partners Group and its investment approach, visit their website or follow them on LinkedIn.
