HUB International’s USD 1.6bn minority equity investment brings the insurance brokerage firm closer to a potential IPO in 2026, according to two sources familiar with the situation.

The Hellman & Friedman-backed, Chicago-headquartered insurance brokerage and financial services firm is now IPO-ready in terms of both systems and internal governance, the sources said.

A listing is more likely in mid-to-late 2026, the sources said. However, the flexibility provided by this round means the process could be pulled forward if market conditions prove favorable.

Led by T. Rowe Price, Alpha Wave Global, and Temasek, the round valued HUB at USD 29bn, as market appetite for scaled insurance distribution platforms grows.

This valuation already makes HUB the highest valued private insurance broker globally, with an IPO expected to push that figure well above USD 30bn, given public peers such as Arthur J. Gallagher and Brown & Brown trade at higher EBITDA multiples, said one of the sources.

The private valuation may still reflect a slight discount, offering investors potential upside at IPO, this source added.

Both NYSE and Nasdaq are under consideration as listing venues, one of the sources said. No decision has been made on bank mandates; while Morgan Stanley and Goldman Sachs advised on previous transactions, additional participants could join the syndicate.

More than 60 institutional investors were engaged during the current raise, according to one source.

While this was not a formal pre-IPO round, it was framed as a chance to begin long-term positioning with future holders, several of whom committed despite the absence of a guaranteed listing timeline.

A pre-IPO round remains a possibility depending on market dynamics, one source said, though the trajectory toward a listing is now firmly in motion with growing investor familiarity and a capital structure designed to support public market entry.

The raise also extended HUB’s Liquid Private Placement (LPP) mechanism, first introduced in 2023 to enable existing institutional shareholders to roll forward while bringing in crossover capital without triggering secondary redemptions.

Proceeds will support continued growth through M&A, technology investment, and balance sheet strength, according to a release.

HUB’s organic growth and integration capabilities continue to distinguish it from other roll-up models in the sector, one of the sources said.

Since acquiring HUB in 2013 at a USD 4.4bn valuation, Hellman & Friedman has brought in minority partners Altas Partners in 2018 and Leonard Green & Partners in 2023. CEO Marc Cohen has helmed the firm since 2018.

This news service previously reported that the firm was being prepared for an initial public offering.

HUB provides risk management, insurance, employee benefits, retirement, and wealth management products and services, according to a release. It has more than 18,000 employees in offices located throughout North America.

H&F declined to comment. HUB, Altas and Leonard Green did not respond to requests for comment.