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Maven Capital Partners invests GBP5m in Global Risk Partners

Private equity and alternative asset manager Maven Capital Partners has participated in the GBP55m investment in Global Risk Partners (GRP), led by Penta Capital, providing GBP5m of the funding.

This deal represents another opportunity for Maven client funds to invest in private equity transactions led by Glasgow-based Penta. Maven previously invested as part of a syndicate in the 2010 acquisition of online insurance provider esure, which earlier this year undertook a successful IPO, and the 2011 buy-and-build platform Six Degrees Group.
 
GRP has been set up by chief executive David Margrett who had a series of senior roles at Willis including CEO of Willis International, where he was responsible for 5,000 staff; CEO of global specialties; and CEO of UK-regulated entity Willis Limited. He is joined by former Deloitte partner Stephen Ross, as the company’s chief operating officer, and chairman Peter Cullum, the founder of insurance broker Towergate.
 
The new business will be a buy-and-build acquisition vehicle targeting the global specialty insurance and reinsurance markets, and intends to pursue the same strategy employed by Towergate.
 
GRP will focus on the Lloyd’s market, where Margrett and Cullum have spent the past 12 months building a strong pipeline of businesses which are at various stages in the acquisition process. The aim is to acquire a broad mix of accredited brokers and managing general agents in order to offer specialist underwriting expertise and knowledge. The first acquisition has already been made with the GBP9.25m purchase of Towergate Commercial Property Underwriting Ltd, which underwrites large UK and European property risks.
 
Andrew Ferguson, partner at Maven says: “We are delighted to be part of the syndicate backing David, Stephen and Peter. They are an exceptional management team, with an in-depth knowledge of the insurance sector and an unrivalled track record of acquiring and integrating businesses.”
 
Margrett says: “The trading environment in terms of the controls and capital and regulatory requirements mean that it's quite difficult to pass businesses from one generation to another or to set up a new business, so it seemed to me there was an opportunity for a well-capitalised properly constructed business of this sort.”

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