AnaCap Financial Partners, a London-based private equity investor, announced the sale of a minority stake in portfolio company MRH Trowe, a German owner-managed commercial lines insurance broker.
AnaCap and MRHT’s founding managers have signed an agreement to sell a minority stake in the group to TA Associates, the Boston-headquartered private equity firm.
The founding managers of MRHT will remain the largest shareholder group post transaction and will be backed by both AnaCap and TA Associates moving forward. Closing of the transaction is subject to EU antitrust approval. Financial details of the deal, which generates a 4.3x money multiple, were not disclosed.
MRHT is one of the 10 largest German industrial insurance brokers, with more than 1,100 employees and €650 million ($700.6 million) of premium volume, offering comprehensive expertise across many insurance lines for industrial and commercial clients, financial institutions as well as high-net-worth individuals.
The sale comes two and a half years after AnaCap’s initial investment, during which time MRHT has completed 21 bolt-on acquisitions, which complemented existing product propositions, client coverage and geographical footprint. During this time, MRHT has also demonstrated a strong double-digit organic growth rate.
The new growth partnership with TA Associates will further accelerate MRHT’s growth trajectory and cement its position as a leading insurance broker in the DACH region. The group is now on track to deliver more than €150 million ($161.7 million) of revenue in 2023.
MRHT expects this revenue to be doubled as part of its new 5-year plan, through organic growth and further acquisitions, by 2028. MRH Trowe had already placed a debt tranche to finance the planned inorganic growth in January.
This transaction follows the recent completion of a debt refinancing for MRHT, led by Macquarie Capital Private Credit and existing lending partner Bain Capital Credit. This extended partnership will further optimize MRHT’s capital structure and provide the funding necessary to deliver on the next chapter of the company’s growth.
““In AnaCap and TA we have found two investors who fully support our strategy. Together we will continue to consistently pursue our 360-degree approach in order to offer our customers optimal solutions in the areas of insurance, benefits and finance, and also to intensify our activities in the underwriting business,” explained Ralph Rockel, co-founder and chief executive officer at MRH Trowe.
“To date, it has been an absolute privilege to work in partnership with the founders of MRHT, and we are thrilled to continue this exciting journey together going forward. The investment in MRH Trowe is one of our most successful investments and we are now delighted to welcome an experienced investor like TA Associates to this successful partnership,” said Tassilo Arnhold, co-managing partner at AnaCap.
“Our core focus remains to back strong entrepreneurs in the financial services sector and the MRH Trowe founder management team with its vision to pursue an integrated buy-and-build model, holistic client servicing approach and strong value-based leadership culture continues to excite us tremendously,” Arnhold said
“This transaction not only gives AnaCap and its investor base a very impressive return of a 4.3x money multiple but it also allows for significant further growth of the business. We see the DACH brokerage landscape continuing to undergo rapid consolidation and look forward to supporting MRHT together with TA Associates in the next phase of growth for the business,” Arnhold continued.
“We believe MRH Trowe is uniquely positioned to consolidate its large and highly fragmented market. We have followed the company for many years and are truly impressed by the work that the founders and broader team have accomplished,” according to Chris Parkin, managing director and co-head of Financial Services at TA Associates.
Source: AnaCap Financial Partners and MRH Trowe
Mergers & Acquisitions
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