Partners Group, a global private markets firm, has announced a significant achievement in value creation through an AI transformation program at Foundation Risk Partners (FRP), a US insurance brokerage. The initiative, delivered in collaboration with Version 1, a UK-based digital transformation specialist and fellow Partners Group portfolio company, resulted in a 120 basis points (bps) EBITDA margin uplift, translating to $10 million in financial impact. This collaboration underscores how private equity firms can drive operational improvements by leveraging expertise across their portfolio companies.
FRP, founded in 2017 and employing over 3,000 people across 68 locations, had built a proprietary policy-level dataset that became the foundation for AI-driven initiatives. Version 1's AI Labs developed two agentic AI solutions using this data. 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 labor-intensive policy checking task. The combined effect of these solutions contributed to the $10 million EBITDA impact, with the first use case moving from concept to production in just 14 weeks, delivered by a seven-person team augmented by Version 1.
Partners Group acquired both FRP and Version 1 in 2022, recognizing growth potential in the US insurance brokerage sector and the AI-first digital transformation services market in the UK and Ireland. Since their acquisition, both companies have doubled their revenues, demonstrating strong performance. Wolf Scheider, Head of Private Equity at Partners Group, highlighted the strategic value of this 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."
This initiative exemplifies a growing trend in private equity where firms are not just providing capital but actively facilitating operational improvements through cross-portfolio synergies. By connecting portfolio companies with complementary capabilities, Partners Group is able to accelerate digital transformation and create measurable financial value. The success at FRP may serve as a model for other private equity firms seeking to harness AI to enhance portfolio company performance. As AI continues to reshape industries, such collaborations are likely to become more common, with private equity firms playing a pivotal role in driving innovation and efficiency. The announcement also highlights the importance of data readiness and strategic partnerships in realizing the full potential of AI investments.
