An affiliated investment fund of private equity firm Lightyear Capital’s Lightyear Fund III, and institutional co-investors, are to make a controlling investment in Cooper Gay Swett & Crawford (CGSC).

The transaction is expected to close in the fourth quarter of 2012, subject to required regulatory approvals and closing conditions.

CGSC is one of the largest global wholesale insurance and reinsurance brokers placing over USD3.5bn in premiums for clients in the London, US, and international insurance markets. Headquartered in London and employing more than 1,400 staff across 60 offices worldwide, CGSC specialises in hard-to-place insurance policies. In 2011, CGSC reported revenues of USD344m and EBITDA of USD69m.

“Lightyear sees a long-term growth opportunity in the non-risk bearing, global insurance brokerage industry,” says Donald B. Marron (pictured), chairman of Lightyear. “Cooper Gay Swett & Crawford is a leader in this field and possesses strong differentiation, global reach, and long-term client relationships.”

“We have known Lightyear for several years, and the Lightyear team has exceeded our expectations with the depth and breadth of their financial services industry knowledge,” says Toby Esser, chief executive officer of CGSC. “We are confident that Lightyear is the right partner and shares the same vision for the next stage of Cooper Gay Swett & Crawford’s growth.”