LDC, a UK-based mid-market private equity investor, has acquired minority stake in motor insurance services provider Right Choice Insurance Brokers (RCIB) for £28m.
RCIB is a motor insurance broker which delivers competitive premiums to those customers who typically find it more difficult to buy insurance online.
The business has developed its own software alongside human interaction that adds to the value of the insurance broker, stated LDC.
Launched in 2008 by CEO Mike Joseph, RCIB is claimed to have grown year on year and has reached a turnover of £26m in its latest financial year, with a workforce of 350 people.
In 2016, RCIB acquired three premium motor breakdown insurance brands from ERS to strengthen its breakdown cover arm of the business.
With LDC’s investment, RCIB is planning to invest further in developing its software and technology platform to speed up growth and capitalize on its performance.
The investment was led by LDC head in London and the South region Yann Souillard, LDC investment director Steve Aston and LDC investment manager Aylesh Patel.
Yann and Steve will both be joining RCIB’s board as non-executive directors alongside non-executive chairman Ian Owen.
Right Choice Insurance Brokers CEO Mike Joseph said: “We have grown organically from day one, and over the last 10 years have achieved significant scale as a result of our unique business model and technology platform.”
Joseph stated that the company is now at situation where investment is of significant importance to push the company to the next phase of growth plans. Partnering with LDC is a natural fit for the company, as they both have been partners in the past.
Yann Souillard said: “Mike is a great example of the type of ambitious entrepreneur with a proven track-record for growth that we love to back. Having developed Right Choice from just a concept, Mike and his team have created a major disruptor in the insurance space and we look forward to working together to execute a growth plan, which will strengthen the business’ position as a market leader in its field.”