Private Equity Firm B.P. Marsh Selling Stake in Hyperion Insurance

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B.P. Marsh & Partners Plc, the U.K. private-equity firm with investments ranging from risk assessment to financial advising, rose for a record sixth consecutive day as investors await a potential payback from the sale of an insurance stake.

B.P. Marsh didn’t address dividend plans in an earnings report today, meaning a special payment based on the planned sale of 80 percent of its stake in Hyperion Insurance Group Ltd. to private-equity firm General Atlantic may be possible, Barrie Cornes, an analyst at Panmure Gordon, said in a note.

The shares rose as much as 1.6 percent to 131 pence, the highest intraday price since Oct. 2007, and were up 0.8 percent at 11:44 a.m. in London. B.P. Marsh has gained 5.7 percent since the stock began rising on May 28, the longest winning streak since the company’s 2006 listing.

B.P. Marsh is an early-stage minority investor in financial businesses, particularly insurance, that was founded in 1990 by majority holder Brian Marsh. Profit rose 56 percent to 5.7 million pounds ($8.7 million) in the year ended Jan. 31, the London-based company said today.

The venture capital provider said yesterday that Besso Insurance Group Ltd., in which it owns 36.5 percent, bought Istanbul-based aviation broker HSB. B.P. Marsh is also “in the final stages of completing a new investment,” it said today.

“The uncertainty over what will happen to the Hyperion proceeds and a flagged new investment” prompted Cornes to maintain a hold recommendation on shares, with a price target of 130 pence. The stock has risen 12 percent this year compared with a 10 percent advance in the 83-company FTSE AIM Financial Services Index.

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