Partners Group, a global private markets firm, has announced a significant achievement in AI-driven value creation within its portfolio. The firm successfully drove a 120 basis points (bps) EBITDA margin uplift at US insurance broker Foundation Risk Partners (FRP) through an AI transformation program delivered in collaboration with Version 1, a UK-based digital transformation specialist and also a Partners Group portfolio company. This initiative underscores how strategic collaboration between portfolio companies can unlock tangible financial impact.
The AI program was built on FRP's proprietary policy-level dataset, which provided the foundation for measurable improvements. Version 1's AI Labs developed two agentic AI solutions: one that reduces the average policy processing cycle for new clients by 94%, leading to a doubling in close rates, and another that automates the labor-intensive policy checking process. In total, the program represents USD 10 million of EBITDA impact for FRP, a clear demonstration of AI's potential to enhance operational efficiency and profitability.
The collaboration was executed by a seven-person team augmented by Version 1, with the first use case moving from concept to production in just 14 weeks. This rapid deployment highlights the agility and expertise that Version 1 brings to the table, as well as FRP's readiness to adopt AI solutions. The success of this program is a testament to the synergies that can be achieved within a private equity portfolio.
Partners Group acquired both FRP and Version 1 in 2022, recognizing the growth potential in the US insurance brokerage sector and the increasing demand for AI-first digital transformation services. Since acquisition, both companies have doubled their revenues, showcasing the strength of their underlying business models and the value of Partners Group's operational approach.
Wolf Scheider, Head of Private Equity at Partners Group, commented on the achievement: "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 highlights the broader implications for the private equity industry: by fostering collaboration between portfolio companies, firms can drive operational improvements that directly impact financial performance. Partners Group's success with FRP and Version 1 serves as a model for how AI can be harnessed to create value in a private equity context.
For more information about Partners Group, visit their website.
