Date: 1st April 2019
On behalf of: B.P. Marsh & Partners Plc
Immediate Release
B.P. Marsh & Partners Plc
("B.P. Marsh", "the Company" or "the Group")
Investee Company Update - Nexus Underwriting Management Limited
B.P. Marsh & Partners Plc (AIM: BPM), the specialist investor in early stage financial services businesses, is pleased to announce that it has provided Nexus Underwriting Management Limited ("Nexus"), in which it holds an 18.5% shareholding, with a £2m revolving credit facility, as part of Nexus' wider debt fundraising exercise in order to undertake M&A activity.
In addition to the facility from the Company, Nexus has secured an additional £14m 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 £16m in additional loan facilities, alongside the £30m of funding secured from both B.P. Marsh and HPS in July 2017.
Nexus has utilised a proportion of these funds to acquire Credit & Business Finance Limited and Capital Risks MGA Limited.
Credit & Business Finance Limited ("CBF")
CBF is a specialist trade credit broker with 21 staff based in Hertfordshire, Leicester and Cardiff. CBF is the second trade credit broker Nexus has purchased, following the acquisition of Credit Risk Solutions Limited ("CRS") in October 2017, reinforcing Nexus' strategy of combining M&A and organic growth to build the leading independent broker in the UK trade credit market.
The CBF management team will continue to run the business post-transaction and will interact with CRS as sister companies through being subsidiaries of Xenia Broking Group Limited, the newly incorporated independent broking division of Nexus.
Following the acquisition of CBF, Nexus is now the leading independent UK trade credit broker, fulfilling one of its strategic goals and uniting the two biggest producers of 'new to market' business, and will hold a share in excess of 10% of the estimated £350m Gross Written Premium for the UK trade credit broking market.
Capital Risks MGA Limited ("Capital Risks")
Capital Risks is a London based Warranty and Indemnity managing general agency, which was established in 2017. Capital Risks specialises in Transaction Liability Insurance for small and medium sized deals.
The Capital Risks underwriting team, will continue with the business and move into Nexus' London headquarters. One of Capital Risks founders, Nathan Sewell will remain on the Board as a Non-Executive Director of Capital Risks. Following the acquisition, the business will be rebranded and trade as Nexus Transactional Risks.
Nexus' Group CEO, Colin Thompson stated: "This debt raising provides Nexus with the ability to continue its strategy of creating a virtual insurance company through a buy and build strategy focusing on profitable, niche MGAs, as evidenced by the acquisition of Capital Risks.
"The acquisition of CBF will unite CRS with the second largest UK producer of 'new to market' trade credit business, CBF.
"Naturally, we are careful to keep our broking and underwriting businesses appropriately independent and separate operationally, however, as operating subsidiaries of Nexus' newly established subsidiary holding company, Xenia Broking Group Limited, these companies combined will become the leading independent trade credit broker in the UK. They will be able to strengthen each other, realize synergies and continue to expand successfully. Just as we were proud to welcome in CRS and are proud of their contribution, we welcome CBF and 21 additional employees with the same enthusiasm and confidence."
Daniel Topping, B.P. Marsh's Chief Investment Officer and the Company's nominee director on the Board of Nexus commented: "The provision of this additional Loan Facility will continue to allow Nexus to further develop its position as the pre-eminent specialist underwriting agency. B.P. Marsh continues to believe that Nexus will continue to grow and has substantial momentum for the future.
"The acquisitions of both Capital Risks and CBF are further positive steps in Nexus' growth trajectory, building on product offering and geographical footprint via M&A activity, which has served them well since our original investment in August 2014."
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE / Camilla Kenyon +44 (0)20 7233 3112
Nominated Adviser & Broker
Panmure Gordon
Atholl Tweedie / Charles Leigh-Pemberton +44 (0)20 7886 2500
Notes to Editors:
B.P. Marsh's current portfolio contains eighteen companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.
Since formation over 25 years ago, the Company has assembled a management team with considerable experience both in the financial services sector and in managing private equity investments. Many of the directors have worked with each other in previous roles, and all have worked with each other for at least five years.
Prior to Brian Marsh's involvement in the Company, he spent many years in insurance broking and underwriting in Lloyd's as well as the London and overseas market. He has over 30 years' experience in building, buying and selling financial services businesses, particularly in the insurance sector.
Alice Foulk joined B.P. Marsh in September 2011 having started her career at a leading Life Assurance company. In 2014 she took over as Executive Assistant to the Chairman, running the Chairman's Office and established herself as a central part of the management team.
In February 2015 she was appointed as a Director of B.P. Marsh and a member of the Investment Committee. In January 2016 Alice was appointed Managing Director of B.P. Marsh.
In her position as Managing Director, Alice is responsible for the overall performance of the Company and monitoring the Company's overall progress towards achieving the objectives and goals of the Company, as set by the Board.
Dan Topping is the Chief Investment Officer of B.P. Marsh, having been appointed as a Director in 2011. He joined the Company in February 2007, following two years at an independent London accountancy practice. Dan is the Senior Executive with overall responsibility for the portfolio and investment strategy of B.P. Marsh.
Dan graduated from the University of Durham in 2005 and is a member of the Securities and Investment Institute and the Institute of Chartered Secretaries and Administrators.
Dan is a standing member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director across the portfolio.
Camilla Kenyon (Millie) was appointed to the main Board in 2011, following her appointment as Head of Investor Relations in 2009. She has dual responsibilities within the Group, running both Investor Relations and the New Business Department and is Chair of the New Business Committee evaluating new investment opportunities.
Millie is nominee director over two investee companies and is a member of the Investment Committee. She has over 20 years of experience in the financial services industry, including numerous Board appointments and is a Member of the Investor Relations Society.
Jonathan Newman is a Chartered Management Accountant and is the Group Director of Finance and has over 20 years' experience in the financial services industry. Jon graduated from the University of Sheffield with an honours degree in Business Studies and joined the Group in November 1999, following two years at Euler Trade Indemnity and two years at a Chartered Accountants. Jon is a Member of the Chartered Global Management Accountants, the Chartered Management Accountants and the Chartered Institute of Securities and Investment.
Jon was appointed a Director of B.P. Marsh & Company Limited in September 2001, and Group Finance Director in December 2003 and was instrumental in the admission of the Group to AIM in February 2006. Jon is a member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director for Walsingham Motor Insurance Limited, and provides senior financial support and advice to all companies within the Group's portfolio as well as evaluating new investment opportunities.
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