Partners Group Drives EBITDA Margin Uplift Through AI Collaboration Between Private Equity Portfolio Companies

Partners Group, a global private markets firm, has announced a significant achievement in AI-driven value creation within its portfolio. The firm reports a 120 basis points (bps) EBITDA margin uplift at Foundation Risk Partners (FRP), a US insurance brokerage, resulting from an AI transformation program delivered in collaboration with Version 1, another Partners Group portfolio company specializing in AI-first digital transformation services.

The initiative, which represents $10 million in EBITDA impact for FRP, demonstrates how private equity firms can foster synergies among their portfolio companies to drive tangible operational improvements. FRP, founded in 2017 and employing over 3,000 people across 68 locations, had built a clean, proprietary policy-level dataset that served as the foundation for the AI program.

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 human-intensive policy checking task. The program 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.

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 services market in the UK and Ireland. Since acquisition, both companies have doubled their revenues, highlighting the success of Partners Group's operational approach.

Wolf Scheider, Head of Private Equity at Partners Group, emphasized the 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 $10 million EBITDA uplift and real, measurable growth. We continue to look for opportunities to leverage AI expertise across our portfolio companies."

This case exemplifies the broader trend in private equity where operational improvements and technological innovation are becoming key drivers of value creation. By leveraging internal expertise and fostering collaboration, firms like Partners Group can enhance performance and deliver measurable financial results.

Partners Group, with approximately 2,000 professionals and over $186 billion in assets under management globally, operates across private equity, private credit, infrastructure, real estate, royalties, and special opportunities. The firm's success with FRP and Version 1 underscores its commitment to transforming businesses into market leaders.

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