Global Risk Partners Ltd., the London-based independent insurance intermediary, announced that global private investment firm Searchlight Capital Partners has completed its acquisition of a majority stake in the group, following regulatory approval.
Financial details of the deal, which was first announced in February, were not disclosed.
Mike Bruce becomes group chief executive and Andy Homer will become non-executive chairman of the group, in addition to his long-standing role chairing the board of the retail division.
Founders Peter Cullum and David Margrett and founding investor Penta Capital will all retain minority stakes, alongside the broader management team. David Margrett will act as non-executive chairman and Peter Cullum will be a non-executive director of the group holding company.*
Founded in 2013, the Global Risk Partners has grown rapidly since inception, both organically and through the acquisition and integration of 59 regional brokers, specialist managing general agents and Lloyd’s businesses. Today, GRP is the UK’s second largest independent insurance intermediary, with gross written premium approaching £800 million (US$1 billion).
The group has achieved annual double-digit EBITDA growth since inception, has 1,600 employees and is responsible for the insurances of over 300,000 clients. (EBITDA is an acronym for “earnings before interest, taxes, depreciation and amortization”).
“To achieve what we have done from a standing start is a great testament to the quality of the team we have built, the 59 businesses we have acquired, and our ability to enhance their propositions through our insurer network, technology and operational and product support,” commented Founders Peter Cullum and David Margrett in a joint statement.
“I have a strong and experienced senior management team in Stephen Ross (head of M&A), Phil Rock (CFO) and Clive Nathan (CEO underwriting), who, working alongside Searchlight, share my ambition to continue to grow GRP and build on its reputation as a great business that is home to outstanding entrepreneurial talent, focused on providing superior, differentiated products and service to our clients,” said Mike Bruce, group chief executive, GRP.
“With Searchlight’s support, we are confident that our rapid growth will continue as we acquire further businesses that fit our culture and model. Our pipeline remains strong and undisturbed by the recent COVID-19 challenges,” he added.
“By combining local presence with deep data-driven expertise, GRP offers a better product set and a superior service to its clients. We are confident that with our deep investment, industry and operational expertise, we can accelerate the growth of the business and reinforce its position as a leading player in a highly fragmented industry,” Bruce continued.
Steven Scott and Charles Schrager, partners in Penta Capital, commented:
“We are delighted with the outcome of another successful buy and build by Penta. In just over six years, with our backing, GRP’s market leading management team went from a proposal, to becoming, some 59 acquisitions later, one of the leading independent insurance businesses in the UK. We wish the team well with the next stage of their journey and are delighted to maintain a significant minority interest in the group.”
* GRP (Jersey) Holdco Ltd. is the group holding company through which the Searchlight investment was made
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