B.P. Marsh & Partners reports funds at £80.2m and no debt

In a recent trading update, B.P. Marsh & Partners, the specialist investor in early stage financial services businesses, has revealed that as of July 31st, 2024 it had cash of £80.2 million.

The firm also revealed that the current cash and treasury balance is £82.9 million and the Group is debt free.

During the six-month period to 31 July 2024 the Group completed the sale of Paladin to Specialist Risk Group Limited, receiving £42.1 million in equity proceeds and £5.9 million in loan repayments.

An additional £1.94 million was received on 6 September 2024 following adjustments to the Completion Accounts, bringing the upfront payment to a total of £44.0 million

In the same period, the Group invested £9.5 million in follow-on funding into the portfolio including £7.3 million in Pantheon.

Since its investment, Pantheon has performed strongly, according to the Group, and it is expected to continue its growth over the remainder of the Group’s financial year and beyond.

B.P. Marsh & Partners also invested £0.8 million in XPT, a specialty lines insurance distribution company, and it is performing strongly and on track to achieve Gross Written Premium of approximately $900 million and $20 million of EBITDA in its financial year to 31 December 2024, the company noted.

The Group also provided loans to the investment portfolio of £1.4 million, including £1.0 million to Devonshire, a London-based Underwriting Agency, specialising in transactional risks encompassing Warranty & Indemnity, Specific Tax, and Legal Contingency Insurance.

It also made a £0.4 million investment on Ai Marine to support further organic growth in line with their business plans.

Other significant cash movements in the period include receipt of £5.1 million in repayments from the investment loan portfolio, including £3.3 million from LEBC who repaid their loans in full and £1.5 million from Pantheon, the Group reported.

The loan portfolio balance as at 31 July 2024 was £19.2m (31 January 2024: £28.9m).

In addition, B.P. Marsh & Partners received £1.2 million from B.P. Marsh Employees’ Share Trust in respect of the Group’s Joint Share Ownership Plan, distributed £4.0 million in dividends and undertook £0.3 million of share buy-backs during the period.

Taking all these into account, the Group’s current cash and treasury balance is £82.9 million and it is debt free, according to the report. Treasury funds are all in one month or less deposit accounts.

With the insurance market continuing to experience strong consolidation into the second half of 2024, B.P. Marsh & Partners expects this trend to persist.

This active market environment presents significant opportunities for our Group, both in attracting new investments and driving growth within our existing portfolio of companies.

The firm stated: “This activity remains a catalyst for substantial prospects for the Group, both in terms of new investments and activity within our core portfolio.

“Both the Group and its portfolio companies continue to be approached by entrepreneurial individuals and teams who do not wish to be part of this consolidation process.”

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