BMS reels in third major PE investor to pony up £355m for new growth

Re/insurance broker  BMS has secured up to £355 million for growth from private equity group Eurazeo, which will acquire an up to 34% stake to take a place as one of three leading PE backers to the brokerage group.

Eurazeo joins existing shareholders British Columbia Investment Management Corporation (BCI), Preservation Capital Partners (PCP) and BMS’ own management and employees on the shareholder roster. Management remains in place and all current shareholders retain their stakes, sides said.

“The investment from Eurazeo and other shareholders is expected to enable BMS to further expand as a global independent specialty (re)insurance broker by growing its foothold internationally both organically and through an active M&A strategy,” Eurazeo said in its statement.

Eurazeo likes the growth story. Sides boast of BMS’s 2.5x revenue growth and 75% increase in staff in the 2019-2022 period as well as a record of eight acquisitions over the past three years, including most recently Eisenar in Spain.

BMS CEO Nick Cook said: “This investment is testament to the extraordinary growth and expansion we have delivered for several years and the confidence we have in our strategy to expand as a global independent specialty insurance and reinsurance broker. BMS has attracted immense attention over the past few months from global investors as we looked to position the business for an exciting future. The global reach of Eurazeo will undoubtedly help us in our ongoing expansion alongside the continue support of BCI and PCP. I am delighted to welcome Eurazeo, a prestigious listed global partner.

“With our track record of organic double-digit growth, this investment, at a market leading valuation, has created the opportunity to scale this business with increased vigour and confidence. We have countless opportunities ahead of us in our specialty and reinsurance divisions. We now have three long-term capital partners who back BMS’ strategy and vision and, crucially, its continued independence.

Eurazeo’s managing director for mid-large buyouts Maxime de Bentzmann added: “We have been exploring specialty insurance and reinsurance markets for some time and are delighted to have found, in BMS, another perfect opportunity to partner with a successful, global business with numerous transformation levers. Their shining record over recent years, under the leadership of Nick Cook and his management team, is one we admire, and we are genuinely excited to join forces to support their future success.”

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