Partners Group, a global private markets firm, announced that its AI transformation program at Foundation Risk Partners (FRP), a US insurance brokerage, has delivered a 120 basis point EBITDA margin uplift, representing USD 10 million in financial impact. The program, executed in collaboration with Version 1, another Partners Group portfolio company specializing in AI-first digital transformation, underscores how AI can drive measurable value in private equity portfolios.
FRP, founded in 2017, operates with over 3,000 employees across 68 locations. The company's success in this initiative was built on a clean, proprietary policy-level dataset, which served as the foundation for the AI-driven improvements. Version 1's AI Labs developed two agentic AI solutions: the first reduces the average policy processing cycle for new clients by 94%, leading to a doubling in close rates; the second automates the labor-intensive policy checking task. These solutions were 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 strategic importance 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."
Partners Group acquired both FRP and Version 1 in 2022, recognizing the growth potential in the US insurance brokerage sector and the AI-first digital transformation market. Since then, both companies have doubled their revenues, demonstrating strong performance. This AI program is a prime example of how Partners Group leverages operational improvements and technological synergies to enhance portfolio company performance.
The success at FRP highlights a broader trend in private equity where AI is increasingly used to unlock value. By integrating AI solutions that streamline operations and improve efficiency, private equity firms can drive significant financial improvements. The 94% reduction in policy processing time not only boosts close rates but also enhances client satisfaction, providing a competitive edge.
Partners Group, with around 2,000 professionals and over USD 186 billion in assets under management, continues to focus on transforming businesses into market leaders. This initiative at FRP demonstrates the firm's commitment to leveraging AI expertise across its portfolio to create tangible, measurable growth. As AI adoption accelerates, such collaborations are likely to become a key differentiator in the private markets industry.
