Investing
in potential

“We have been pleased to work alongside Hyperion over the last two decades, helping them build the company to the successful position it stands in today. The B.P. Marsh investment model continues to create demonstrable long term value to shareholders, and we are confident the strategy will continue to find, develop and realize more opportunities going forward.”

Brian Marsh OBE
Chairman of B.P Marsh & Partners Plc

• Instrumental in co-founding and funding Hyperion in 1994, with an initial equity investment of £25,000 and a further equity investment of £4.3m over the period of investment;
• Sold 80% of holding in Hyperion to General Atlantic for a cash consideration of £29.2m in July 2013, with remaining holding subject to a Call Option;
• In July 2016, General Atlantic exercised the Option with B.P. Marsh selling its final holding in Hyperion for a cash consideration of £7.3m;
• Internal Rate of Return of 25.56% since 1994;
• B.P. Marsh oversaw Hyperion’s growth through a longstanding partnership and provision of working capital finance;
• Spearheaded the process which lead to the private equity firm 3i joining as a fellow investor in 2008;
• Since inception Hyperion had grown from 5 staff to over 3,000, producing revenue of £299m in its year ending 30 September 2015;

The investment and disposal of Hyperion is an example of B.P. Marsh’s successful strategy and business model, and demonstrates how the Company proactively helps investments mature for the benefit of both the underlying Company and the B.P.Marsh shareholders.

B.P. Marsh and Partners Plc (AIM:BPM), the specialist private equity investor in early stage financial services businesses is pleased to announce that it has acquired, through a newly established company Paladin NewCo Limited (“Paladin”), an effective 35% shareholding in CBC UK Limited (“CBC”).

CBC is a Retail and Wholesale Lloyd’s Insurance Broker, offering a wide range of services to commercial and personal clients as well as broking solutions to intermediaries. For the year ending 31st December 2017, CBC has a forecast revenue of £5,549,000 with a forecast EBITDA of £634,000.

The Group has partnered with CBC’s management team to buy out an existing shareholder, delivering a 50% shareholding to CBC’s management team, a 15% shareholding to Andrew Wallas, who will join CBC as Non-Executive Chairman, and 35% to B. P. Marsh.

The acquisition of CBC was made through Paladin to which the Group provided £4,000,000 of funding. This was provided via the subscription for a 35% shareholding in Paladin for a cash consideration of £3,500, additionally, the Group provided a Loan Facility of £3,996,500 which was fully drawn down on completion.

CBC’s CEO, Robert Cottingham, has over 30 years’ experience in the insurance industry having held a number of senior positions, including at Glencairn Limited (now part of Willis Towers Watson), where he was responsible for the company’s Professional Risks Division. Robert joined the CBC Board in 2011 and became Chief Executive in November 2015.

CBC’s new Chairman, Andrew Wallas, brings 40 years of insurance experience to CBC. During that time he became one of the youngest managing directors of a Lloyd’s broker. He also established what became Glencairn Ltd, which was ultimately acquired by what is now Willis Towers Watson and was Non-Executive Chairman of Martello Underwriting, backed by Penta Capital, which was sold to RSA plc.

Dan Topping, Chief Investment Officer of the Company, who will join the Board of CBC as a Non-Executive Director, commented: “This is a classic MBO transaction for B.P. Marsh, in partnership with a motivated Management Team and with involvement from one of our long-standing associates. We are pleased to invest in a Lloyd’s broker to which we can bring our experience and market knowledge, given our track record of developing these businesses. I am also glad to be reigniting the Group’s relationship with Andrew Wallas which has proved to be a successful formula in the past.”

Andrew Wallas, Non-Executive Chairman of Paladin, commented: “CBC is a long established Lloyd’s broker with a solid client base, talented and motivated people and substantial unrealised potential. I am delighted by this dynamic opportunity to re-enter the London Insurance Market and to renew my long-standing relationship with B.P. Marsh.”