Peter Blanc: No limit to size of acquisitions with Goldman Sachs backing

Aston Lark will have the financial might to acquire businesses of any size following the investment deal with Goldman Sachs.

This is according to the broking group’s chief executive Peter Blanc, speaking after finalising the deal, worth in the region of £320m-£350m, with the bank’s private equity arm Goldman Sachs Merchant Banking Division.

Blanc revealed at the start of the year he was looking for new private equity investment to accelerate further growth, and Goldman Sachs had been on a shortlist of potential investors. Others understood to be on that that list included Abry and Centerbridge.

But Blanc told Insurance Times throughout the search for new investment, Goldman Sachs had impressed him.

“During the whole process Goldman Sachs have been a very dynamic, thoughtful and an interesting company to talk to,” he said. “They are full of lots of ideas and they’ll be a great home for us.”

Staff shareholding

Goldman Sachs takes a majority shareholding in the company, with plans in the pipeline for former backer Bowmark Capital to reinvest in the future. The deal secures Aston Lark’s independence for the next four to five years at least.

The deal will also bring on more staff as shareholders. Aston Lark currently has 95 of its staff as shareholders, and this number will grow to around 130 following the deal.

Blanc said giving more members of staff a stake in the business was important to him.

“It’s a vital part of our business,” Blanc said. “One of the ways that we are going to differentiate ourselves to the market is by having wide equity ownership amongst our staff. It’s a great opportunity for staff to build a career and some wealth for themselves and their family.”

No staff changes will be made as a result of the deal. Blanc said Goldman Sachs will be involved in the business as a “very supportive partner”.

He added: “It’s a fantastic endorsement having a name like Goldman Sachs want to invest in the business.

“They are a global brand with an amazing reputation, so it is incredibly exciting. What they bring is an entirely global perspective on how to grow businesses. We think with them by our side it bodes very well for the next few years.”

Acquisitions

Blanc is eyeing a host of new opportunities with the new investment, including MGAs, networks and wholesale brokers.

But while the deal grants Aston Lark the backing to go after any business looking to sell, Blanc said the UK and Ireland would continue to be its focus for now, and it would remain selective.

“Our number one focus is one quality and that will never change, but provided that whatever we are buying is culturally compatible and the right quality, then the great thing now is there is no limit,” Blanc said.

“So if we find a business that is culturally compatible with Aston Lark, then there’s no reason why we couldn’t go for it.

“We have fantastic debt facilities and if there is a deal that exceeds our debt facilities then we’ll talk to Goldman Sachs about further equity investment.”

Blanc revealed Aston Lark has two deals in the pipeline he expects to complete in the next few months.

But moving forward he said acquiring a wholesale broker was of particular interest.

“We are already placing a lot of business into the London market and it’s a logical and obvious next step for us to also have a wholesale offering,” he said.

“We deal with hundreds of brokers that place business with our Road Runner scheme and with our renovation plan scheme.

“So if we had a true wholesale offering as well that we could extend out to those brokers there is no reason why that couldn’t be very successful.”