Partners Group, a global private markets firm, has announced a significant operational improvement at its portfolio company Foundation Risk Partners (FRP), a US insurance brokerage, through an AI transformation program. The initiative, delivered in collaboration with Version 1, another Partners Group portfolio company specializing in AI-first digital transformation, resulted in a 120 basis points (bps) uplift in EBITDA margin, representing USD 10 million in financial impact.
The program focused on leveraging FRP's proprietary policy-level dataset to build 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. These improvements were achieved by a seven-person team, with the first use case moving from concept to production in just 14 weeks.
Wolf Scheider, Head of Private Equity at Partners Group, emphasized the strategic value of such collaborations: "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."
Partners Group acquired both FRP and Version 1 in 2022, recognizing growth opportunities in the US insurance brokerage sector and the AI-first digital transformation market. Since acquisition, both companies have doubled their revenues, demonstrating strong performance. This AI collaboration underscores Partners Group's operationally oriented approach to value creation, transforming businesses into market leaders.
The success at FRP highlights the potential for AI to drive significant operational efficiencies in traditional industries. By pairing a data-rich company with a technology expert, Partners Group has shown how private equity firms can actively foster innovation across their portfolios. This case serves as a model for other firms looking to harness AI for measurable financial gains.
As AI continues to reshape industries, this collaboration exemplifies how strategic partnerships within a portfolio can unlock hidden value. The 120 bps EBITDA improvement is not just a financial metric; it represents a competitive advantage for FRP in the insurance brokerage market. For more information on Partners Group and its initiatives, visit Partners Group's website.
