by B.P. Marsh | Jul 13, 2017 | Portfolio News
B.P. Marsh & Partners Plc, the niche venture capital provider to early stage financial services businesses, is pleased to announce that it has provided Nexus Underwriting Management Limited (“Nexus”), in which it holds an 18.6% shareholding, with a £4m Loan Facility, as part of a wider debt fundraising exercise, in order to undertake M&A activity.
In addition to the facility from the Company, Nexus has secured a £26m Loan Facility from funds managed by HPS Investment Partners, LLC (“HPS”). HPS is a leading global investment firm.
The funding provided by both B.P. Marsh and HPS results in Nexus securing a total of £30m in loan facilities.
Since the Company’s original investment in Nexus in August 2014, Nexus has undertaken a number of acquisitions, alongside substantial organic growth. This has seen Nexus increase its Gross Written Premium Income from £56m in 2014 to a forecast of £125m in 2017, a forecast increase of 123%. In the same period, EBITDA increased by a forecast 181%, from £2.6m to a forecast £7.3m.
Nexus have a number of further M&A opportunities in the pipeline and will drawdown on the £30m loan facilities as and when required over the coming months. Further information will be released when it becomes available.
Nexus’ Chairman Colin Thompson stated; “This debt raising provides Nexus with the ability to satisfy our short-term plans of creating a virtual insurance company through a buy and build strategy focusing on profitable, niche MGA’s.”
Daniel Topping, B.P. Marsh’s Chief Investment Officer and the Company’s nominee director on the Board of Nexus commented “Nexus operates in a fast paced and dynamic area of the London and international insurance market and the provision of this funding will allow Nexus the opportunity to further develop its position as the pre-eminent specialist underwriting agency. This Loan Facility demonstrates B.P. Marsh’s belief that Nexus continues to gain substantial momentum for the future”.
by B.P. Marsh | Jun 30, 2017 | Portfolio News
B.P. Marsh & Partners Plc the niche venture capital provider to early stage financial services businesses, is pleased to note that its investee company Nexus Underwriting Management Limited (“Nexus”), in which it holds an 18.6% shareholding, has announced that it has completed the acquisition of Vectura Underwriting (“Vectura”), a Lloyd’s Coverholder and Marine Cargo specialist, from Aquila Underwriting, part of Hawkes Bay Holdings Limited, which also owns the Lloyd’s Insurance Broker Tyser & Co Limited.
Vectura was established in 2007 and is a Managing General Agency offering clients a wide range of insurance products in the Marine Cargo space, and in particular International Cargo and Freight Liability Insurance.
As part of this transaction, Vectura’s two founding partners, Stephen Fletcher and Tim Hancox, have joined Nexus.
Stephen Fletcher began his insurance career in 1967, including roles at Allianz Global Corporate & Specialty as head of marine, London, and at Assurances Générales de France. Additionally, he has recently been appointed to the Board of the Institute of London Underwriters.
Tim Hancox began his insurance career in 1969, including roles as a senior cargo underwriter at Allianz Global Corporate & Specialty and Assurances Générales de France.
Now that the acquisition of Vectura has been completed, Nexus underwrites a number of specialty products on behalf of underwriting partners that support its product offerings within the following lines of business: financial lines, trade credit, accident & health, surety, travel, property, latent defect, marine and cyber. In 2017 Nexus are forecasting Gross Written Premium Income of £125m and EBITDA of £7.3m, a 40% EBITDA increase over prior year. This growth will be generated from organic growth within the business, without reference to M&A activity such as this.
Nexus’ Chairman Colin Thompson stated; “The acquisition of Vectura is the first addition to be incorporated under Nexus’ marine division in London, and adds a new class of short tail business to our London operations. Additionally, Vectura’s worldwide geographic focus complements the marine business currently written in Asia by Nexus”.
Daniel Topping, B.P. Marsh’s Chief Investment Officer and the Company’s nominee director on the Board of Nexus commented “These remain exciting times at Nexus and B.P Marsh is delighted to be part of their success going forward. This transaction demonstrates further progress in Nexus’ growth aspirations which we only see gaining further momentum”.
by B.P. Marsh | Jun 21, 2017 | Uncategorised
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by B.P. Marsh | Jun 19, 2017 | Portfolio News
As announced by the Company on 13th June 2017, B.P. Marsh & Partners Plc (AIM:BPM) has invested $6,000,000 into a New York based specialty lines insurance distribution company. Following recent press speculation, the Company is pleased to announce further details concerning this new venture.
B.P. Marsh has subscribed for a 35% shareholding in the New York based XPT Group LLC (“XPT”), through its wholly owned subsidiary company, B.P. Marsh (North America) Ltd. XPT is a newly established operation which is in active discussions with a number of parties over potential minority or majority investments into established entities in the US wholesale insurance arena. XPT plans to make one or two US-based acquisitions over the remaining months of this year.
The management team at XPT is a line-up of industry veterans, including Tom Ruggieri, formerly of Marsh, Advisen and Swett & Crawford and Mark Smith, former president and CEO of Stewart Smith, the US wholesaler which was sold by Willis to AmWins in 2005. Smith is also a former president and management director of R-T Specialty’s New York operation.
In addition to the above, the team also includes Jeff Heath, the founder of Heath Group, and Mason Power, former COO and chief marketing officer at Swett & Crawford, where he worked closely with Tom Ruggieri. Mason Power also worked at Advisen, which was founded by Tom Ruggieri.
This investment represents a return to the US market for the Company, following on from the Company’s recent investment in Canada, Stewart Specialty Risk Underwriting Ltd.
B.P. Marsh strongly believes that XPT is well positioned to take advantage of the significant consolidation opportunities in the small-to-medium-sized wholesale space in the US.
Commenting on the investment, Chairman of the Company Brian Marsh said “We are pleased to be back in the US with an investment in XPT. Our business is in backing people and the founders of XPT have impeccable credentials, deep industry knowledge and great ambition. We are excited by the opportunities presented in partnering with them and in the US market in general and look forward to growing XPT alongside them.”
Dan Topping, B.P. Marsh’s Chief Investment Officer, who has been appointed to represent the Company at XPT, stated “I am delighted to be working alongside the Management Team in delivering on their strategy and developing their presence in the US specialty insurance market.”
by B.P. Marsh | May 5, 2017 | Uncategorised
B.P. Marsh exits from Hyperion after over twenty years of investment
20th February 2017
“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.
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