Robert Lockhart, former president and chief operating officer of Hilb, Rogal & Hobbs, has launched Kinloch Holdings, Inc. – a newly formed insurance brokerage holding company that will focus on insurance and risk management for middle market companies.
Lockhart plans to grow Kinloch’s business through a combination of acquisitions and organic growth. The company is targeting brokers with a strong regional presence or product focus. Once a platform company is in place, Kinloch will systematically build a full regional hub by rolling in smaller firms and producer teams with complementary products and services.
“Our fundamental business proposition is to organize around the needs of the client rather than traditional profit center structures,” says Lockhart. “We want to create a free flow of talent in order to maximize deliverables to clients.”
Kinloch’s first hub will be in the New York metropolitan area. On Sept. 29, Kinloch purchased Long Island-based Genatt Associates, which specializes in the real estate, construction, transportation, healthcare and hospitality industries. For 2005, the broker’s revenues were in excess of $26 million. Genatt will serve as the group’s platform company in the Northeast.
“Quite simply, Genatt has the finest transactional capabilities I’ve ever seen,” says Lockhart. “Their market relationships are outstanding, they have significant line of insurance specialization and they are relentless competitors.”
Northaven Management, Inc. and CCP Equity Partners are leading the equity syndicate, with ING Capital LLC leading the debt financing.
Kinloch Holdings, Inc.
Genatt views joining forces with Kinloch as a way to broaden its horizons and take its business to a new level.
“Over the years, we’ve been approached by eight of the top 10 brokers and most of the major banks. While they bring significant resources to the table, there was never a meeting of the minds,” explains Les Genatt. “With Kinloch we have the opportunity to be in on the ground floor of building a powerful, client-focused organization with people who share our entrepreneurial values and definition of success.”
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