by B.P. Marsh | Feb 28, 2017 | Case Studies, Exit Case Study
“Besso’s unique culture and workforce allowed its skilled team of insurance professionals to work closely with clients to meet every type of challenge and risk. B.P. Marsh worked closely with Besso’s management over the last 20 years to grow their business with strategic oversight and financial support and is a perfect example of our successful investment model.”
Dan Topping (Non-Executive Director of Besso)
Chief Investment Officer of B.P. Marsh & Partners Plc
- Besso is a highly regarded, independent Lloyd’s broking group, arranging all forms of insurance, including property, casualty, professional indemnity, marine and aviation to a wide variety of domestic and international customers;
Instrumental in co-founding and funding the modern guise of Besso in 1995, when the Group assisted a specialist team departing from insurance broker now known as JLT Plc;
- B.P. Marsh has supported Besso over its two decades of investment with Equity and Loan funding to bring about substantial growth;
- Sold holding in Besso to BGC Partners Inc for a cash consideration of £21.5m in February 2017, representing an enterprise valuation of approximately £70.5m;
- Proceeds represent an increase of c. 55% on its published valuation of the same stake in Besso at 31st July 2015 of £13.9m;
Internal Rate of Return of 21.90% since 1995 (inclusive of all income and fees);
- From revenue of c. £2.3m in the year ended 31st December 1995 to revenue of £44.6m in year ended 31st December 2016;
- The investment and disposal of Besso is an example of B.P. Marsh’s successful strategy and business model, and demonstrates how the Group proactively helps investments mature for the benefit of both the underlying investment and the B.P. Marsh shareholders.
by B.P. Marsh | Feb 28, 2017 | Portfolio News
B.P. Marsh & Partners Plc (AIM: BPM), announces that, further to its announcement on 4th January 2017, and all conditions to completion having now been met, the sale of its 37.94% stake in Besso Insurance Group Limited (“Besso”) to an affiliate of BGC Partners, Inc (“BGC”) has today completed.
The Group has received £21.5m in cash today (net of transaction costs and pre-tax) pursuant to BGC’s 100% acquisition of Besso for an enterprise valuation of approximately £70.5m. The ultimate consideration remains subject to various adjustments by reference to completion accounts at today’s date. The Group’s proceeds from this sale represents an increase of c. 55% on its published valuation of the same stake in Besso at 31st July 2015 of £13.9m.
Following receipt of funds (including the associated repayment of existing shareholder loans), B.P. Marsh expects to have additional funds available of approximately £19.07m (after transaction costs, adjustments and tax).
The Board of B.P. Marsh intends to continue to strike a balance between utilising funds for investment for long-term capital growth, whilst providing shareholders with a meaningful ongoing return. Investment funds will be targeted to both the existing portfolio to enable those businesses to develop further and to pursue new opportunities. To reflect the increase in cash reserves, B.P. Marsh has raised the upper limit for initial investment to £5m, from £3m.
The current pipeline of new opportunities includes start-up and early stage, as well as more developed, businesses particularly within the insurance intermediary sector both in the UK and internationally. B.P. Marsh has expanded geographically in recent years and now holds investments in Australia, South Africa and Singapore and Canada as well as throughout the UK. The international strategy remains the same; to focus on territories with good opportunity for business development in partnership with a London investor and a suitably developed regulatory and compliance environment.
by B.P. Marsh | Feb 20, 2017 | Portfolio News
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”). (more…)
by B.P. Marsh | Feb 7, 2017 | Portfolio News
B.P. Marsh, the niche venture capital provider to early stage financial services businesses, is pleased to provide the market with an update on trading for the Group’s financial year ended 31 January 2017. (more…)
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