AnaCap sells stake in German insurance broker for 4.3x return

AnaCap Financial Partners has agreed to sell a minority stake in one of the largest owner-managed commercial lines insurance brokers in Germany for a 4.3x return on its initial investment. The transaction is designed to accelerate the broker’s growth trajectory and cement its position in the DACH region.

AnaCap and MRH Trowe’s (MRHT’s) founding managers have signed an agreement to sell a minority stake in the Group to TA Associates.

MRHT is a German industrial insurance broker offering comprehensive expertise in all insurance lines for industrial and commercial clients, financial institutions as well as high-net-worth individuals. The company has more than 1,100 employees and €650 million of premium volume. The group is now on track to deliver more than €150 million of revenue in 2023.

Following the deal, the founding managers will remain the largest shareholder group, backed by both AnaCap and TA Associates.

The transaction marks the fourth exit from AnaCap’s third fund, generating a 4.3x money multiple, following shortly after the 4x exit of Oona Health to Topdanmark earlier this month.

The sale comes 2.5 years after AnaCap’s initial investment, during which time MRHT have completed 21 bolt-on acquisitions, complementing existing product propositions, client coverage and geographical footprint. During this time, MRHT has also recorded a double-digit organic growth rate.

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 aims to further optimise MRHT’s capital structure and provide the funding necessary to deliver on the next chapter of the company's growth.

Tassilo Arnhold, co-managing partner at AnaCap, said: “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. 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 added: “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.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.