Partners Group, a global private markets firm, announced that it has driven a 120 basis points (bps) EBITDA margin uplift at Foundation Risk Partners (FRP), a US insurance brokerage, through an AI transformation program. The program was delivered in collaboration with Version 1, a UK-based digital transformation specialist and fellow Partners Group portfolio company. The initiative resulted in approximately USD 10 million of financial impact for FRP, according to a press release.
Founded in 2017, FRP has grown to over 3,000 employees across 68 locations. The company built a clean, proprietary policy-level dataset, which served as the foundation for the AI-driven value creation. Leveraging this data, Version 1's AI Labs developed two agentic AI solutions. The first solution reduces the average policy processing cycle for new clients by 94%, leading to a doubling in close rates. The second automates the human-intensive task of policy checking. In total, the program represents USD 10 million of EBITDA impact for FRP, generated by a seven-person team augmented by Version 1, with the first use case moving from concept to production in just 14 weeks.
Partners Group acquired both FRP and Version 1 in 2022, recognizing growth tailwinds in the US insurance brokerage sector and AI-first digital transformation services in the UK and Ireland. Since acquisition, both companies have performed strongly, with each doubling its revenues. This collaboration showcases how transformational AI value creation can be driven through private equity portfolio partnerships, according to the firm.
Wolf Scheider, Head of Private Equity at Partners Group, commented, "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 announcement highlights the growing importance of AI in driving operational efficiencies and value creation within the private equity industry. By leveraging the expertise of one portfolio company to benefit another, Partners Group demonstrates a collaborative approach that could become a model for other firms. The significant reduction in policy processing times and the automation of manual tasks not only improve FRP's bottom line but also enhance customer experience and employee productivity.
Partners Group, with around 2,000 professionals and over USD 186 billion in assets under management, has a global presence and a focus on transforming businesses into market leaders. This AI collaboration is a prime example of its operationally oriented approach. For more information, visit Partners Group's website or follow them on LinkedIn.
