Private equity firm 3i has taken a minority shareholding in international insurance group Hyperion in a deal that values the company at more than GBP120m.
Private equity firm 3i has taken a minority shareholding in international insurance group Hyperion in a deal that values the company at more than GBP120m. 3i says it will support Hyperion as it enters its next phase of growth, expanding both the range of products it provides and the territories in which it operates.
Founded in 1994 by David Howden, Hyperion focuses on a range of specialist insurance categories including professional indemnity and directors’ and officers’ liability through its subsidiaries Howden, Dual and CFC.
The group serves clients in 50 countries from offices in Europe, Scandinavia, the Middle East, Asia, the Americas and Australia, and has achieved an annual growth rate of around 40 per cent since its launch.
‘In choosing 3i as our partner, it was important to us that they embraced the entrepreneurial spirit of our group and shared our ambition to build a world-beating specialist insurance business,’ says Hyperion chief executive Howden.
‘I believe they will enhance our entrepreneurial flair and ability to continue to attract and retain the very best people. 3i’s long established brand, global network and considerable management expertise, combined with its financial strength, will help us to achieve a faster pace of international growth, both organically and through acquisitions.’
3i director Gordon Hague adds: ‘Hyperion is a global success story and a leader in the specialist insurance sector. We have been impressed with the entrepreneurialism and quality of people at every level. We are confident that 3i can bring immense value based on our experience within the financial services sector and our track record partnering with ambitious businesses to drive growth globally.
‘This investment is typical of 3i Growth Capital’s partnership style: equity rather than debt, full alignment of interests, an entrepreneur who retains control of the business, with 3i bringing the value of our international network to support the next phase of business growth.’
3i says the investment builds on the group’s expertise in the financial services sector, including investments in Jelf Group, ACR, BestInvest, Fulcrum, Kneip Communication and Gain Capital over the past 18 months.
Established in 1994 and headquartered in the City of London, Hyperion Insurance Group is an independently owned insurance and underwriting company with offices in 16 countries and more than 500 employees. Hyperion is also backed by specialist private equity investor BP Marsh & Partners and Murofo Investments.
3i Growth Capital is the world’s largest growth capital fund investing more than USD3bn every year in businesses across Europe, Asia and the US, typically investing up to EUR250m in businesses to help achieve growth ambitions, restructure shareholdings, release equity or change the balance of equity to debt.
