UK mid-market private equity house Dinedin has backed the buyout of Kingsbridge Risk Solutions (Kingsbridge), an insurance broker for contractors and corporates.
The transaction, sees Livingbridge, the mid-market private equity firm that backed Kingsbridge in January 2014, fully exit the business.
This is Dunedin’s second investment in the financial services sector this year, following the buyout of Alpha Financial Markets Consulting in February 2016.
Founded by the current CEO Steve Wynne in 2001, Kingsbridge specialises in providing insurance services that are tailored to meet the needs of contractors, freelancers and independent professionals, as well as the compliance requirements of partners including recruiters and accountants. Working alongside its strong partner network, Kingsbridge covers the broadest range of industry sectors in its market, including aerospace, banking and finance, rail, automotive, nuclear, oil and gas and information technology.
The company, which employs 55 people, is headquartered in Tewkesbury, Gloucestershire, and has offices in Liverpool and Guernsey. Over the last two years, Kingsbridge has more than doubled EBITDA and almost doubled revenues to circa GBP7 million.
Following this investment by Dunedin, Kingsbridge will continue to grow through expansion into new sectors and through the introduction of new insurance products that are tailored for the contractor market. The business will also focus on international expansion, enabling it to offer insurance to contractors that operate overseas.
Giles Derry, Partner at Dunedin, who will join the Kingsbridge board at completion, says: “Kingsbridge represents an opportunity for us to invest in a UK “hidden champion” – a business that is still at the early stages of its development but has already proven its business plan and established a strong position in a fast growing market. We very much look forward to working with the Kingsbridge team to help them capitalise on the significant growth prospects that lie ahead.”
Oliver Bevan, Partner at Dunedin, who co-led the Kingsbridge and Alpha deals and who will also join the Kingsbridge board at completion, added: “Dunedin has developed significant expertise and experience in Financial Services and we are very pleased to have backed two exciting businesses from the sector in the last two months. We were able to draw on our sector expertise to identify this investment opportunity, and as a result the deal was conducted off-market.”
Steve Wynne, founder and CEO of Kingsbridge, says: ‘We have achieved significant growth in the last two to three years and the time is now right to take the business into the next phase of its development. Having considered the various options available to us, we have chosen Dunedin as our investment partner as we feel that they will enable us to maintain our pace of growth, retain our independence and nurture our entrepreneurial spirit.
“We have a clear vision for Kingsbridge and are confident that, with Dunedin’s support, we can build on our market leading position.”
Andrew Garside, Partner at Livingbridge, says: “It has been great to see Kingsbridge develop into the business it is today. Since our investment Kingsbridge has gone from strength to strength, nearly doubling its profits, capitalising on the market opportunity available. We are confident Kingsbridge will continue to expand its potential and we look forward to seeing the business build on the success that it has had to date.”