Private equity firm BC Partners is exploring the sale of a minority interest in UK-based insurance services provider Davies Group, following the collapse of talks over a full sale due to differences in valuation expectations, according to a report by Bloomberg citing people familiar with the matter.
The shift in strategy comes after discussions with prospective buyers stalled, with BC Partners now pivoting toward a partial exit. The firm had sought a valuation of approximately £4bn ($5.3bn) for Davies, a figure deemed too high by Nordic Capital, the last remaining bidder in the process, the sources said.
While BC Partners remains confident in Davies’ growth trajectory and resilience – particularly given its lack of tariff exposure – it has been unwilling to lower its price expectations, the sources added.
BC Partners acquired Davies in 2021 in a transaction that valued the company at around £1.2bn, including debt. Since then, Davies has expanded significantly through a series of bolt-on acquisitions.
The firm provides end-to-end claims management and administrative support to insurers, reinsurers, and brokers, leveraging technology such as drones to enhance its claims handling capabilities. Headquartered in London, Davies operates across more than 20 jurisdictions, including the United States.
The potential partial sale comes amid a banner year for BC Partners. The firm, which oversees approximately €40bn ($45bn) in AUM, returned €12bn to investors in 2024 – its strongest year to date in terms of distributions.
Recent exits include the sale of its majority stake in Dutch generics manufacturer Synthon to Goldman Sachs Asset Management, as well as the divestment of its holding in Canadian security group GardaWorld. BC Partners also brought portfolio company Springer Nature AG to public markets in Germany last year.
Looking ahead, the buyout house is targeting a €5bn to €6bn raise for its next flagship vehicle, according to Bloomberg News, and is seeking to capitalise on recent liquidity events to bolster investor confidence amid a challenging fundraising climate.
