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”.
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