US private equity firm Stone Point Capital has completed a $US2.5 billion ($3.8 billion) investment in Ardonagh, positioning the majority owner of Australia’s Envest for further growth.

Stone Point becomes a substantial shareholder alongside Madison Dearborn Partners and HPS Investment Partners. Other large global institutions supporting Ardonagh include an Abu Dhabi Investment Authority subsidiary.

The transaction values the global intermediary group at $US14 billion ($21 billion).

“With such strong financial backing, Ardonagh has unparalleled empowerment to capitalise on future growth opportunities and deliver value to our clients, investors and people.” group CEO David Ross said.

Ardonagh, founded in 2017 through a merger of several British businesses, made its first Australian acquisition in February 2021 with a deal for Resilium Insurance Broking. Two years later it bought investment platform Envest.

Since then, Ardonagh has backed Brisbane-based Envest to complete more than 30 acquisitions, building gross written premium to more than $3.6 billion across Australia.

The parent company made 68 acquisitions worldwide last year, including PSC Insurance Group for $2.3 billion.

Envest CEO Greg Mullins says Stone Point’s backing is a pivotal moment.

“Their support will be instrumental in strengthening our presence in the Australian market and continuing to grow organically and inorganically,” he said.

The Stone Point investment, flagged last December, was completed against a backdrop of global economic uncertainty.

“Today’s announcement is a further testament to the continued strength and growth of Ardonagh and its ability to operate and create value across market cycles,” Madison Dearborn Partners managing partner Vahe Dombalagian said.