MGA Avid sells majority stake to Beech Tree Private Equity to ‘fuel organic growth’

Specialist MGA Avid Insurance Services has sold a majority stake in the company to Beech Tree Private Equity (BTPE).

The investment from BTPE will give Avid the firepower to “accelerate our growth and build on the investment we’ve made during the past year in both people and systems,” according to Avid managing director Stephen Gibson, who will continue to run the business with commercial director John Inwood.

Fellow Avid director and co-founder Gary Edmondson will leave the business as part of the deal.

Gibson said: “We have grown significantly in the last 12 months, and this investment will fuel further organic profitable growth and also enable us to acquire new underwriting teams.”

He said the MGA, which he co-founded in 2006, specialises in travel, social housing and council leasehold markets. It is based in Leeds and London and is a Lloyd’s broker and a Lloyd’s coverholder, writing over £40m of gross written premium.

“Our aim this year to grow significantly through a combination of building out our existing lines, especially in leasehold, and attracting underwriting teams who have been held back by the recent reductions in capacity and who have unique skill sets and access to distribution and want to be part of the growth story,” Gibson added.

“We have the systems and tools in house, and A rated paper from our insurer partners, which together will prove highly attractive for talented underwriters who control niche and specialist books of business, and want to grow. Ideally, we would like to have hired at least two new teams by this time next year.”

Gibson added that BTPE are “as ambitious as we are” with “deep experience of the sector” from previous investments.
“It was a big move for us to partner with BTPE after 13 years as an independent but we are convinced we have made the right decision, and look forward to working with them to take Avid on the next stage of its growth journey.”

Andy Marsh, managing partner of BTPE, said: “Avid is a stand out business with a profitable portfolio and a number of long-term relationships with capacity providers and distributers.

“The management team has done a fantastic job in building the business to date and we are looking forward to supporting their plans for the future.”

The deal has received regulatory approval and the consideration is undisclosed.

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