Synex Business Performance has secured two new minority investors, bringing to a close a 10-month process triggered by the exit of Brown Brothers Harriman Capital Partners (BBHCP). The new investors are the Caisse de dépôt et placement du Québec (CDPQ) and the Ares Management Credit funds, both taking equal stakes in the brokerage network.
The announcement was made on April 3. In mid-February, when Synex unveiled its latest acquisition in Quebec’s brokerage sector, it also confirmed BBHCP’s decision to divest its $100-million investment made in March 2022.
In an interview with Insurance Portal, Yan Charbonneau, president and chief vision officer at Synex, confirmed that the arrival of CDPQ and Ares marks the conclusion of a search process led by RBC Capital Markets.
“RBC introduced us to Ares as part of the process. We were already familiar with them from earlier efforts to identify U.S. investors. This time, they were the first we met with. CDPQ came into the picture later, but it was really RBC that brought Ares to the table,” Charbonneau explains.
As for CDPQ, it had previously been approached without a deal materializing—until now.
BBHCP exits
On BBHCP’s decision to exit less than three years after joining the firm, Charbonneau says the U.S. fund was “happy and satisfied” with the progress but no longer shared Synex’s appetite for growth through acquisitions.
“We wanted to get back on the acquisition trail and take a more aggressive approach to growth. They weren’t ready to move at the pace we were aiming for. So we agreed to go our separate ways. That’s what led us to look for someone to buy them out,” he says.
“Our interests just weren’t aligned anymore. They were pleased with the results, and we parted on good terms. It wasn’t a messy breakup.”
New partners
As of Dec. 31, 2024, CDPQ reported net assets of $473 billion. Ares Management Corp., through its global platform, managed over US$525 billion in assets.
“The support of CDPQ and Ares sends a strong message: our model and vision work and are seeking to redefine the future of independent brokerage,” says Charbonneau.
According to Kim Thomassin, executive vice-president and head of Québec at CDPQ, the investment includes both equity and debt financing. She also notes that CDPQ is already partnered with Ares in other ventures.
“Our relationship with Synex underscores Ares’ ability to combine our deep knowledge of the insurance sector with the ability to deliver scale and flexible capital solutions,” adds Scott Rosen, partner at Ares.
Ares operates its Ares Insurance Solutions platform to manage investment portfolios for insurers in both life and property and casualty segments. This division employs approximately 1,100 professionals. As of year-end 2024, Ares managed about US$71.4 billion in assets on behalf of 249 insurers worldwide.
Over the 12 months ending Dec. 31, 2024, Ares made 341 investments through its various funds, totalling US$48.2 billion. Among these was an investment in The Hilb Group, a U.S.-based brokerage with 100 branches and 2,400 employees, to support its growth under Carlyle Group’s ownership, as noted in a release published Feb. 5, 2025.
Looking to francophone Europe
The new capital will help Synex continue its expansion. While the primary focus remains on consolidating the brokerage network in Canada, Charbonneau is open about his ambition to enter the brokerage market in francophone Europe.
“We’ve made two previous attempts, one of which didn’t pan out because we were tied up in the investor search,” he says. He adds that while personal P&C insurance is heavily dominated by direct insurers in those markets, commercial insurance still runs through brokers.
“It’s a fragmented market. In commercial lines, it’s different—there are fewer dominant players,” he explains.
“Our growth-by-acquisition model hasn’t changed, and that’s part of what appealed to our new investors. The direction stays the same. We hope CDPQ and Ares will also bring ideas to the table. It’s added expertise,” he says.
Charbonneau confirms that Synex’s acquisition pipeline is already full, and that upcoming deals will be in Canada. He’s particularly keen to leverage CDPQ’s expertise to identify solid acquisition opportunities in Europe — “which will help us avoid unnecessary mistakes,” he adds.
As for Ares, its role will be that of a traditional investor seeking returns on its equity participation.
Will Synex face competition from major international brokerages if it expands in Europe? Not necessarily, says Charbonneau.
“Giants like Marsh and Aon grow organically. When they do make deals, they’re worth billions. That’s not the segment we’re in,” he explains.
“We don’t run into them here. When I talk to independent brokers in the U.S., they don’t either. Same thing in Europe—those firms aren’t consolidating the market. The competition will come from players our size already operating in Europe.”
Synex currently operates in the Maritimes, Quebec, Ontario, Alberta, and British Columbia. The group includes around 20 brokerages and employs more than 700 people.
It manages over $1 billion in premium volume—about two thirds from property and casualty insurance, and the rest from group insurance. Synex is a member of the Canadian Broker Network and U.S.-based Intersure.
