Partners Group, a global private markets firm, announced that an AI transformation program at portfolio company Foundation Risk Partners (FRP) has driven a 120 basis point (bps) increase in EBITDA margin, translating to $10 million in financial impact. The program was delivered in collaboration with Version 1, another Partners Group portfolio company specializing in AI-first digital transformation services.
FRP, one of the fastest-growing insurance brokerages in the U.S., was founded in 2017 and now employs over 3,000 people across 68 locations. The company built a clean, proprietary policy-level dataset that served as the foundation for AI-driven value creation. Leveraging this data, 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. In total, the program represents $10 million in EBITDA impact for FRP, delivered 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 growth tailwinds in the U.S. insurance brokerage sector and the increasing demand for AI-driven digital transformation services. Since acquisition, both companies have doubled their revenues, and this collaboration highlights the potential for cross-portfolio synergies.
"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," said Wolf Scheider, Head of Private Equity at Partners Group.
This announcement underscores the growing importance of AI in operational value creation within private equity. By leveraging the expertise of one portfolio company to benefit another, Partners Group demonstrates a model for driving efficiency and profitability in an increasingly competitive market. The success at FRP could serve as a blueprint for other private equity firms seeking to harness AI to improve portfolio company performance.
For leaders in business and technology, this case study illustrates the tangible financial benefits of AI when applied to specific operational pain points. The reduction in policy processing time and automation of manual tasks not only boosts margins but also enhances customer experience and scalability. As AI continues to mature, such collaborative approaches may become a standard practice in portfolio management.
Partners Group, with over $186 billion in assets under management, continues to seek opportunities to apply AI expertise across its portfolio. The firm's operational approach and focus on transformation align with the broader industry trend of integrating AI into core business processes to drive long-term value.
