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LONDON - B.P. Marsh & Partners Plc, a specialist investor in financial services startups, has sold its approximately 20% interest in Sterling Insurance Pty Ltd to ATC Insurance Solutions Pty Limited. The deal, which involves the full acquisition of Sterling by ATC, is valued at AU$ 33.2 million, equivalent to around £15.9 million.
The transaction sees B.P. Marsh’s stake in Sterling being exchanged for equity in ATC, estimated at AU$ 6.5 million, or approximately £3.1 million. This valuation aligns with B.P. Marsh’s last assessment of Sterling as of July 31, 2024. B.P. Marsh originally invested in Sterling in 2013 for close to £1.9 million. The investment has yielded an 8.8% internal rate of return over the 12-year period. With this sale, B.P. Marsh’s shareholding in ATC increases from 25% to 27%.
Dan Topping, who served as a nominee director on the board of Sterling, has stepped down following the completion of the transaction but will maintain his board position at ATC.
The rationale behind the sale includes the potential for a strategic alignment of the two companies, allowing Sterling’s senior management to continue their involvement in the growth of the combined entity and providing an exit for some long-term shareholders of Sterling.
ATC, which is Australia’s largest independent specialist underwriting agency with full backing from A-rated Lloyd’s of London capacity, is expected to generate over AU$ 225 million in gross written premium in its current fiscal year ending June 30, 2025, not including the Sterling acquisition.
Chris Anderson, ATC’s Chairman and Managing Director, expressed enthusiasm for the acquisition, citing Sterling’s reputation for handling niche and complex risks. Tony Parington, Sterling’s Chairman, also welcomed the merger, acknowledging the productive partnership with B.P. Marsh since 2013 and the continuation of this relationship within ATC.
The transaction is indicative of B.P. Marsh’s flexible investment strategy in the financial services sector, focusing on both size and structure of its investments. This information is based on a press release statement.
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