Darby Private Equity’s Darby Converging Europe Fund III (SCS) SICAR (DCEF III) has completed a mezzanine debt investment in Unilink SA (Unilink), strengthening Unilink’s balance sheet and providing capital for growth through acquisitions.
Financial details of the transaction have not been disclosed.
Unilink is the leading insurance multiagency in Poland offering products of over 40 insurance providers through a distribution network of approximately 8,000 sales representatives. The recent merger with Insurance Service created a clear market leader with over PLN 450 million (approximately USD110 million) gross written premiums issued in 2016, which was a significant milestone towards Unilink’s goal of achieving PLN 1 billion (around USD245 million) gross written premiums by 2020; a sector leading figure in Poland.
“The expansion capital from DCEF III allows us to continue growing our distribution network while maintaining the highest service levels provided to our clients, distribution partners and insurance companies,” says Igor Rusinowski, CEO of Unilink. “Financial backing of a strong and reputable investment fund is proof of confidence in our business model and our position as a valuable strategic partner to both our clients and insurance providers. Engagement of a leading global asset manager in our future development is the strongest confirmation of our solid financial standing and managerial expertise.”
“We are supportive of Unilink’s successful management team that has a proven track record of developing the business both organically and through acquisitions. We are confident that, with our financial investment, Unilink will continue its impressive growth trajectory, strengthening its position as an undisputed market leader,” says Arkadiusz Podziewski, Principal in Darby’s Warsaw office.
“The insurance intermediation market remains fragmented. At the same time, drive for performance improvements by insurance providers, changes in distribution models driven by technology, and the higher complexity of regulation surrounding insurance distribution all contribute to increasing pressure on service quality and efficiency. Market consolidation is the natural response to these challenges, and Unilink is best positioned to lead such a consolidation trend,” adds Michal Jozwiak, Vice President in Darby’s Warsaw office.
DCEF III has previously made four investments in Turkey, two in Hungary, one in Latvia and one in Poland. Including DCEF III, Darby manages two Central and South East Europe dedicated funds, which have collectively made 25 investments in the region.
