Business
Sale of Shareholding in Kentro Capital Limited
Sale of Shareholding in Kentro Capital Limited.
About this update from B.p. Marsh & Partners Plc
[{"type":"text","content":"\n\n23 May 2023\n \nB.P. Marsh & Partners Plc\n(\"B.P. Marsh\", \"the Company\" or \"the Group\")\n \nSale of Shareholding in Kentro Capital Limited (\"Kentro\")\n \nB.P. Marsh and Partners Plc (AIM:BPM), the specialist private equity investor in early stage financial services businesses, is pleased to announce the disposal of its entire 18.7% shareholding in Kentro, subject to FCA approval being granted.\n \nHighlights:\n· £51.5m (net of all transaction costs) cash consideration expected to be received from the disposal of its 18.7% holding in Kentro, subject to regulatory approval\n· Money multiple on Equity Investment of 3.41x\n· Internal rate of return to B.P. Marsh of 25% (inclusive of all income and fees)\n \nSale of Shareholding in Kentro\n \nB.P. Marsh agreed on 22 May 2023 to dispose of its shareholding in Kentro, the London-based insurance industry investment group, pursuant to an agreement by which Brown & Brown, Inc. (\"Brown & Brown\"), one of the largest US-based insurance intermediaries, has agreed to acquire the entire issued share capital of Kentro.\n \nThe Completion of B.P. Marsh's disposal of its 18.7% stake to Brown & Brown and of Brown & Brown's acquisition of the remaining interests in Kentro not owed by B.P. Marsh will be subject to, inter alia, the FCA's approval of change of control.\n \nBackground to the Investment\n \nB.P. Marsh originally invested in Kentro (then known as Nexus Underwriting Management Limited) in August 2014, with an initial equity investment of £1.5m for a 5% shareholding.\n \nB.P. Marsh has overseen Kentro's growth through a longstanding partnership and the further provision of £13.6m of capital, increasing its shareholding to 18.7%, Kentro's largest single investor. This investment, alongside bank financing, allowed Kentro to commence its acquisitive growth strategy, via both Nexus Underwriting Limited (\"Nexus\"), the underwriting (or \"MGA\") arm, and Xenia Broking Group (\"Xenia\"), the broking arm.\n \nSince B.P. Marsh's first investment, Kentro has made 23 acquisitions, growing from Gross Written Premium of c.£55m in its year ending 31 December 2014 to now over £500m.\n \nWith B.P. Marsh's support, the underwriting arm, Nexus, underwrites acros...