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MONEY MANAGEMENT

Quebec’s Caisse, KKR team up to acquire USI Insurance Services

Caisse de Depot et Placement du Quebec, Montreal, and KKR & Co. on Friday announced they acquired insurance broker and consultant USI Insurance Services, along with company employees, from Canadian private equity firm Onex Corp. for US$4.3 billion.

KKR and Caisse, which manages C$270.7 billion ($202.2 billion) in Quebec public pension and other assets, will own an equal amount of the company. Neither Jean-Benoit Houde, Caisse spokesman, nor Kristi Huller, spokeswoman for KKR, would provide details of the deal, including the size of USI employees’ stake, but Ms. Huller said USI management would hold a small minority stake.

USI serves as a brokerage and consultant on property and casualty insurance, employee benefits, personal risk and retirement.

Caisse's investment will be made through an existing partnership with KKR that invests in financial sector and insurance-related firms. That partnership began two years ago, Mr. Houde said.

Caisse had C$30.3 billion in private equity investments as of Dec. 31.