Partners Group, a global private markets firm, announced that it has driven a 120 basis points (bps) EBITDA margin uplift at portfolio company Foundation Risk Partners (FRP), a US insurance brokerage, through an AI transformation program. The program, delivered in collaboration with Version 1, a UK-based digital transformation specialist and fellow Partners Group portfolio company, represents USD 10 million of financial impact for FRP.
The initiative focused on leveraging FRP's proprietary policy-level dataset to develop two agentic AI solutions. The first solution reduced the average policy processing cycle for new clients by 94%, leading to a doubling in close rates. The second automated the human-intensive policy checking task. According to Partners Group, the program was delivered by a seven-person team augmented by Version 1, with the first use case moving from concept to production in just 14 weeks.
Wolf Scheider, Head of Private Equity at Partners Group, highlighted the significance of the collaboration: "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 underscores a broader trend in private equity where firms are increasingly seeking to create value through operational improvements and technological innovation, rather than relying solely on financial engineering. By facilitating collaboration between portfolio companies, Partners Group is demonstrating a model for driving synergies that can be replicated across its portfolio. The success at FRP also highlights the growing importance of data and AI in transforming traditional industries like insurance brokerage.
FRP, founded in 2017, has over 3,000 employees across 68 locations and is one of the fastest-growing insurance brokerages in the US. Version 1, acquired by Partners Group in 2022, is a leader in AI-first digital transformation services. Both companies have doubled their revenues since acquisition, according to Partners Group.
The AI program's success is a clear example of how private equity firms can leverage their portfolio companies' complementary strengths to drive measurable outcomes. As AI continues to reshape industries, this collaboration serves as a blueprint for other firms looking to harness technology for value creation.
Partners Group, with over USD 186 billion in assets under management, has a global presence and a focus on operational transformation. This initiative reflects its commitment to building businesses into market leaders through innovative approaches. The company's ability to identify and execute such synergies may set it apart in the competitive private equity landscape.
The results at FRP demonstrate that AI can deliver substantial financial impact when applied to clean, well-structured data. The reduction in policy processing times and the automation of checking tasks not only improved efficiency but also enhanced the client experience, contributing to higher close rates.
As the private equity industry faces increasing pressure to justify fees and show value creation beyond financial engineering, this case study offers a compelling example of how operational partnerships and AI can drive growth. It also highlights the potential for cross-border collaboration within a portfolio, bridging expertise from different regions and sectors.
Partners Group's announcement comes at a time when AI adoption is accelerating across industries, and investors are keenly watching for tangible results from such initiatives. The firm's success with FRP and Version 1 may encourage other PE firms to explore similar collaborations, further integrating AI into their value creation strategies.
For more information on Partners Group, visit their website.
