B.P. Marsh and Partners, a specialist private equity investor in early stage financial services businesses, has further invested $12.6 million in XPT, a US based wholesale insurance broking and underwriting agency platform across the US Specialty Insurance Sector.
According to the announcement, this transaction was structured via both a purchase of existing equity and an additional loan facility, and financed using the Group’s existing cash reserves.
This provision of funding will take place alongside the extension of XPT’s current banking facilities. Currently, XPT has a $67 million banking facility with Apogem Capital LLC.
In addition to B.P. Marsh’s new investment, Apogem will contribute an extra $55 million loan facility, raising XPT’s total banking facility to $122 million.
Due to this increase, Apogem has syndicated the loan facility with First Eagle Bank, which is providing a portion of the additional funds.
B.P. Marsh and Partners provided funding to XPT by purchasing equity shares from three senior managers and by providing a new loan facility of US$6.3 million. This loan has an interest rate of SOFR plus 4.7%, subject to a minimum interest rate of 10%.
Following the Group’s equity share acquisition and XPT’s recent Q4 investments, the Group’s fully diluted shareholding in XPT will reach 29.63%.
As announced in its most recent half year results, the valuation of the company’s stake in XPT increased by 20.8% over the prior six months, producing an associated internal rate of return of 31%.
Dan Topping, Chief Investment Officer of the Company, commented: “This investment reflects our continued confidence in XPT’s robust business model and impressive growth trajectory. Since our initial involvement in 2017, XPT has demonstrated exceptional performance, driven by strategic acquisitions, talent hires, and solid organic growth.
“By increasing our equity stake and providing further loan support, we are reinforcing our commitment to XPT’s ongoing expansion. We look forward to seeing this new capital boost XPT’s growth strategy as they continue to cement their position in the market. We are also pleased to welcome First Eagle Bank as a financial institution providing further funding support to XPT allowing it to continue its growth trajectory.”
In the current financial year, ending December 31, 2024, XPT is poised to generate Gross Written Premium close to $1 billion, a significant increase from the $675 million reported in the same period the year prior.
PT’s Chief Executive Officer, Thomas Ruggieri stated: “We remain appreciative of the continued support from B.P. Marsh. This latest round of funding further solidifies our partnership and provides XPT with the resources to accelerate our strategic growth initiatives.
“Since our founding in 2017, we have focused on expanding our footprint through both acquisitions and organic growth, allowing us to reach nearly $1 billion in Gross Written Premium this year.”
He concluded: “This new funding from B.P. Marsh, coupled with the increased banking facility from Apogem and now First Eagle Bank, empowers us to pursue new opportunities, strengthen our team, and continue to deliver exceptional value to our clients across the United States.”
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