Searchlight takes majority stake in GRP

Searchlight Capital Partners has acquired Global Risk Partners Limited, an independent insurance intermediary.

Searchlight Capital Partners has acquired Global Risk Partners Limited, an independent insurance intermediary. No financial terms were disclosed.

PRESS RELEASE

Global Risk Partners Limited (“GRP”, “the Group”), a leading independent insurance intermediary, is pleased to announce that global private investment firm Searchlight Capital Partners (“Searchlight”), has completed the acquisition of a majority stake in the Group, following regulatory approval.

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 CBE 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 Group has grown rapidly since inception, both organically and through the acquisition and integration of 59 regional brokers, specialist MGAs and Lloyd’s businesses. Today, GRP is the UK’s second largest independent insurance intermediary, with Gross Written Premium approaching £800m. 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.

GRP’s ‘hub and spoke’ model in its retail broking business and owner-driver culture is supported by a proprietary data warehouse providing the business with cutting edge analytics that support the development of new risk solutions to the benefit of its insurer network and their end clients.

Founders Peter Cullum CBE and David Margrett said:
“This is an important milestone for GRP, and we are delighted to announce today’s completion. Searchlight is the right partner to support the Group on the next stage of its journey and we look forward to working closely with them as GRP continues to grow.
“We are also pleased to confirm Mike Bruce’s appointment as CEO, and are confident that he has the experience, skillset and market relationships to drive the business forward at pace and deliver against GRP’s ambitions to further capitalise on the significant market opportunity ahead.

“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. At the heart of our profitable growth model stands an entrepreneurial, client focused culture of which we are proud and which serves as a solid foundation for a successful long-term future.”

Mike Bruce, Group Chief Executive, added:
“GRP is a unique business and I’m extremely proud to become CEO. Thank you to both Peter and David for the business they have created and the leadership they have shown. They have been pivotal in GRP reaching this landmark and as highly regarded figures in our industry, I am delighted that we will continue to benefit from their insight, knowledge and experience.

“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.

“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.”

Oliver Haarmann, Founding Partner at Searchlight, commented:
“We are excited to be partnering with Peter, David, Mike, Penta and the entire GRP team to drive the next chapter of GRP’s growth and success.”

Andrew Frey, Partner at Searchlight, commented:
“We are pleased to complete our investment into GRP and to begin working with Mike and the management team. GRP’s differentiated ‘hub and spoke’ model and entrepreneurial, owner-driver culture has enabled GRP to build a leading market position through impressive growth.

“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.”
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 Limited is the Group Holding Company through which the Searchlight investment was made