18.7%
Equity % at December 2023 prior to disposal
3.41x
Realised multiple on invested capital on disposal
£51.5m
Realised sale proceeds
”This disposal has delivered an Internal Rate of Return of 25% (inclusive of all income and fees) and a money multiple on the Equity Investment of 3.41x.
Dan Topping (Non-Executive Director of Kentro)Chief Investment Officer of B.P. Marsh & Partners PLC
It is a further testament to B.P. Marsh’s ability to secure niche opportunities, to back successful management teams and to successfully realise value for our shareholders
- Kentro is a London-based insurance industry investment group which specialises in Directors & Officers, Professional Indemnity, Financial Institutions, Accident & Health, Trade Credit Insurance and Political Risks Insurance
- B.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;
- B.P. Marsh oversaw Kentro’s growth through a longstanding partnership and the further provision of £13.6m of capital, allowing Kentro to commence its acquisitive growth strategy;
- During B.P. Marsh’s investment period Kentro made 23 acquisitions, growing from Gross Written Premium of c.£55m in its year ending 31 December 2014 to over £400m in its year ending 31 December 2022;
- Sold 18.7% holding in Kentro to Brown & Brown, Inc., one of the largest US-based insurance intermediaries, for a cash consideration of £51.5m in October 2023, representing an enterprise valuation of approximately £380m;
- Internal Rate of Return of c. 25% since 2014 (inclusive of all income and fees);
- The investment and disposal of Kentro is an example of B.P. Marsh’s successful long-term investment strategy and highlights the Group‘s ability to back successful management teams and realise value for our shareholders.
