Livingstone Partners’ debt advisory team has successfully concluded a debt raise on behalf of online insurance intermediary iprism. The funds will be used to repay a majority of the loan notes held by founder Gary Burke and his private equity backer, Magenta Partners. Livingstone advised Burke on the equity capital raise which introduced Magenta into iprism in 2010.
Livingstone Partners’ Debt Advisory team has successfully concluded a debt raise on behalf of rapidly-growing online insurance intermediary iprism Underwriting Agency Ltd (“iprism”) to repay a majority of the loan notes held by founder Gary Burke and his private equity backer, Magenta Partners. Livingstone advised Gary on the equity capital raise which introduced Magenta into iprism in 2010.
iprism is an insurance intermediary focused on the SME market providing new policies and renewals to brokers and direct customers that are underwritten by its panel of insurers. The company has developed an online platform that generates truly comparative quotes and full policy documentation in real-time. Brokers and customers can select their policy and buy it within minutes without referral back to the underlying insurers – revolutionising the speed and efficiency of price testing, purchasing and renewals.
iprism’s secure and highly scalable platform boasts household names such as AXA, Aviva, and LV on its panel of insurers. Over 1,000 brokers have iprism agency agreements, enabling them to benefit from the efficiency and high service levels that the company offers.
Since Livingstone introduced Magenta, iprism has continued its steep growth trajectory achieving over £2m EBITDA in 2011 and anticipating in excess of £4m in 2012. This growth is forecast to continue as iprism captures greater market share and enjoys the previous year’s policy renewals.
The Debt Advisory team at Livingstone identified The Royal Bank of Scotland as the right banking partner for iprism through running a competitive process and negotiating attractive terms and structure.
Bill Troup, Managing Director of Debt Advisory at Livingstone London commented: “iprism’s profitability, strong cash generation and good visibility of earnings deliver the perfect characteristics to support leveraged debt. This was an excellent opportunity to return cash early to the private equity sponsors.”
Founder Gary Burke commented: “It was great to work with Livingstone again. Eleanor Wilkinson’s knowledge of the business and the team made the whole process very smooth. The technical knowledge and banking experience that Bill Troup provided enabled us to perfect the debt structure to suit all parties.”
Eleanor Wilkinson, Director at Livingstone London concluded: “It is always a pleasure to work with entrepreneurs such as Gary and his team. We are delighted to have been involved again in this exciting next phase of iprism’s evolution and look forward to its continued success.”
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About Livingstone Partners LLP
Livingstone Partners LLP is an international mergers and acquisitions advisory firm with offices in London, Chicago, Düsseldorf, Madrid and Beijing. The firm’s 80 staff completed 43 deals worth £1.6bn in 2011 and is on course to close 39 deals in 2012.