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BMS
Key Information
COUNTRIES
17+ Countries including
UK, US, Canada, Australia,
Spain, Latin America
SUB-SECTOR
Insurance Distribution
Insurance Services
HEADQUARTERS
London
YEAR INVESTED
2019
Business Description
- Founded in 1980, BMS is one of the largest independently owned Lloyd’s specialty insurance brokers, managing more than $2bn of gross written premiums
- BMS’s broking activities comprise Insurance (55% GWP) and Reinsurance (45% GWP)
- Insurance lines include casualty, construction, energy, cyber and technology, professional and financial lines, property, terrorism and political violence, shipping and aviation finance
- Reinsurance lines include US Property & Casualty, LatAm and Caribbean reinsurance, facultative, specialty casualty and global reinsurance
- BMS is headquartered in London, has 18 offices around the world and employs c. 450 FTEs
Investment Highlights
- Scarcity of independent broker platforms with BMS being is one of the few remaining independent and scaled specialty insurance brokers which has significant scarcity and strategic value
- Market dislocation enabling significant growth through team hires, highly accretive and significant opportunity created by large scale M&A of larger broker
- Highly profitable and cash generative business model with 110% existing customer revenue retention and c.90% client retention
- Downside protection given high barriers to entry and limited correlation to Macro
Optio
Key Information
COUNTRY
United Kingdom
SUB-SECTOR
Insurance Distribution
Insurance Services
HEADQUARTERS
London
YEAR INVESTED
2020
Business Description
- Optio is a vertically integrated and scaled insurance managing general agent (“MGA”), with a focus on high growth emerging and specialty lines of business that write more than £250m of gross written premiums
- Optio segments include Cyber, Subcontractor Default, Construction, Specialty lines, and Bay Risk
- Bay Risk is Optio’s internal binder broker, a specialized insurance broker helping source and place capacity with insurance carriers for its internal and 3rd party MGAs
- The business has c.100 FTEs, with all underwriting and top-level management based in London and c.15 FTEs focused on sales and client management located across the US
Investment Highlights
- High growth, at scale specialty MGA
- Significant organic growth potential in markets with favourable underlying drivers
- Track record in executing accretive team hires and M&A
- Diversified capacity and distribution
- High retention and renewal rates
- Market-leading proprietary tech platform
- Attractive financial profile
Parmenion
Key Information
COUNTRY
United Kingdom
SUB-SECTOR
Wealth Management
WealthTech
HEADQUARTERS
Bristol
YEAR INVESTED
2021
Business Description
- Founded in 2007, Parmenion Capital Partners is one of the fastest growing providers of technology solutions and discretionary fund management (DFM) services to adviser firms and savers in the UK:
- Adviser platform: online investment & wrap platform providing custody to client assets through various tax wrappers with access to 600+ 3rd party funds
- DFM: 18 in-house model portfolios across a range of investment styles and risk grades
- More than £8bn of AuM on behalf of c.900 adviser firms, over 2.5k advisers and 68k end-clients
- Headquartered in Bristol, the company employs about 214 FTEs
Investment Highlights
- The UK wealth management market is a large and growing market, adviser platforms are one of the fastest growing segments within this market
- Parmenion is one of the fastest growing platforms in the B2B platform space with market leading adviser ratings, competitive pricing and proprietary technology which will continue to contribute to strong organic growth and asset stickiness
- The business’ discretionary fund management (DFM) proposition is a critical component of value and growth potential
- Continued organic growth should drive material value creation with further upside opportunities from consolidation within the wealth management market
- Parmenion is highly scalable, well invested and on the cusp of critical mass; significant operational leverage expected as the asset base grows