The newly merged company will rank as one of the top 35 brokerage companies in the nation
Boston-based Risk Strategies Company and New York-based DeWitt Stern have merged. The October 1st announcement claimed the surviving combined company to be named DeWitt Stern. The newly formed brokerage company will now rank as one of the Top 35 brokers nationally, with almost $100 million dollars in revenues and a staff of 400.
[A] private equity firm…[has] allocated substantial additional equity capital to support Risk Strategies’ growth initiatives
This latest merger follows from Risk Strategies’ June 2013 completion of “a significant transaction and partnership that positioned the company for accelerated growth.” This transaction and partnership involved Kohlberg & Company, L.L.C, a private equity firm specializing in middle market investing. In this transaction the private equity firm acquired a majority of Risk Strategies’ stock and allocated substantial additional equity capital to support Risk Strategies’ growth initiatives from a then recently-established $1.6 billion investment fund, “Kohlberg Investors VII.”
According to the terms of the merger, Joylon F. Stern will remain as the Chairman of DeWitt Stern. He also will be appointed Vice Chairman of the Board of Risk Strategies, joining Michael Christian, CEO & Founder, and Roger Egan, Executive Chairman. The existing management teams at each firm, however, will remain the same. Additional terms of the merger were not disclosed.
“As we’ve gotten to know Risk Strategies Company, we’ve come to understand just how powerful this combination will be for our clients, employees and trading partners,” said Stern. “DeWitt Stern and Risk Strategies were both founded as privately-held companies with a keen focus on client service. Blending the organizations strengthens our resources, particularly with risk management clients, enhances our real estate, employee benefits, and private client practices, and provides significant opportunities for our employees. I believe this will solidify our status as a leading, national insurance brokerage firm in the coming century.”
Michael Christian started Risk Strategies in 1997. Since then, the company has rapidly grown both organically and through agency acquisitions to become a national insurance broker with over 260 employees and 12 offices. The company specializes in all lines of insurance including property, casualty and employee benefits. In addition, it also serves specialty clients in the areas of higher education, real estate, environmental, professional liability, private equity, construction and healthcare.
According to the company’s announcement, its integration with DeWitt Stern will not only increase Risk Strategies Company’s resources and specialties, but will also allow it to offer its existing and future clients broader access to insurance carriers and industry-specific expertise.
“DeWitt Stern is an iconic name in insurance and we’re honored to have Jolyon Stern and his team join our firm,” said Chief Executive Officer and Risk Strategies Founder, Michael Christian. “They bring strategic significance in burgeoning growth areas, including entertainment, private client personal lines, fine arts, and real estate. Together, we expect to add meaningful talent and technical expertise further strengthening the value that both firms bring to their clients.”
Founded in 1899, DeWitt Stern is a privately held insurance brokerage and risk management firm specializing in business, personal, fine art, entertainment & media, employee benefit and executive liability insurance. The company has a long history of providing innovative and arts-based insurance. It has helped insured products from Albert Einstein’s violin to cultural institutions such as Carnegie Hall, The Brooklyn Academy of Music and The San Francisco Ballet.