B.P. Marsh & Partners has agreed to divest its entire 37.94% stake in Besso Insurance Group to BGC Partners.
The deal values Besso at a total enterprise value of £70.5m. The final acquisition price can vary as per different adjustments.
The fund's share of the proceeds totalled £20.6m net of transaction costs, ahead of the £20.1m valuation BP Marsh prescribed to its share of the business in July last year.
B.P. Marsh executive chairman Brian Marsh said: "Our investment in Besso typifies our approach – long-term, collaborative and focused on delivering highly attractive results for all stakeholders.
"We have stuck with Besso through many ups and downs over the course of two decades, as we believe our investments to be a true partnership with the management team or individual we back.
“However, our partners at Besso have now reached the stage in the development of their group for which they need financial firepower which outstrips the resources that B.P. Marsh is able to supply.”
The transaction is subject to an approval from the Financial Conduct Authority (FCA). As per the deal, B.P. Marsh’s chief investment officer Daniel Topping will give up his position of Non-Executive Director on the Boards of Besso and Besso ESOP Trustee.
B.P. Marsh claims to have played a key role in establishing Besso in 1995 by financing a buy out from what is currently the Jardine Lloyd Thompson Group, through an initial equity investment of £0.46m. It followed up later by another equity investment of £2.37m in the next 21 years to support Besso's growth.
Image: B.P. Marsh & Partners will divest its stake in Besso to BGC Partners. Photo: courtesy of stockimages/Freedigitalphotos.net.