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A global investment firm with $584 billion in assets under management has put a major vote of confidence in one area firm.
In late December, funds managed by Blackstone Tactical Opportunities acquired a significant stake in Bradenton-based Sunz Holdings LLC. Sunz Holdings is the parent company of Sunz Insurance, a fast-growing national workers’ compensation insurance firm. The 350-employee firm has grown revenue 203% since 2016, from $137 million to $415.02 million in 2019.
Sunz CEO Steve Herrig, who declines to disclose terms of the Blackstone deal, tells Coffee Talk the process began over a year ago. “We were close to finalizing a deal and then COVID hit,” he says. “Everyone took a step back and wanted to see how things were going to unfold.”
Watching Sunz withstand the pandemic was a trial by fire of sorts that gave Blackstone a way to see how the company handled outside stresses and proved to the firm the Sunz model. “When they circled back, interest was great if not greater,” Herrig says. “It’s a pretty good vote of confidence in Sunz and our ability to manage going forward.”
Herrig, who will remain majority owner, says he expects the deal to help Sunz grow. “It positions us to grow in a host of different areas, not the least of which will be to provide services to their portfolio companies,” he says.
It could also put Sunz in a position to possibly add additional lines of coverage. “Being partners with Blackstone gives us quite a bit of credibility in the marketplace,” he says. “Having them as a backer definitely changes the perspective of a potential customer base that needs assurances that Sunz is financially stable. It takes it to a whole different level from that perspective. We’re very financially stable, this just removes all doubt.”
Herrig and other members of the executive team, such as President Rick Leonard, will stay in place. Herrig says he plans to tap into Blackstone for ideas, perspectives and potential board members. “What Blackstone can do for us — this partnership — it’s almost indescribable,” he says. “I couldn’t tell you just how much growth this could represent because it’s hard to quantify. I believe it’s extraordinarily quite a large opportunity for growth.”
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