New funding vehicle MVP makes first investment in Green Insurance

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A second broker is expected to join MVP by the end of March on completion of due diligence

Newly launched investment vehicle Minority Venture Partners (MVP) has made its first investment in Green Insurance Group.

Green Insurance chairman Clive Galbraith says the investment will help the group grow significantly as it continues to focus on client and insurer relationships, as well as its acquisitions strategy.

The insurance broker said that it has also successfully integrated the four brokers it acquired in 2009 and is close to making an announcement on a new acquisition.

Managing director Duncan Coleman added: “MVP’s decision to make a strategic investment in our business is confirmation of our successful business model and our ability to continue to develop the business further. Green Insurance Group remains an independent broker, committed to delivering the best service for our clients.”

MVP chief executive James McCaffrey said as an investment partner the company will support Green while allowing the management to continue to run, control and grow its business.

The Peter-Cullum backed venture provides funding for UK insurance brokers who wish to release capital to buy out shareholders, retire, fund local acquisitions or for personal use. The range of minority investment it makes into businesses is between 20% and 30% of the value of the company.

A second broker is expected to join MVP by the end of March after the due diligence has been completed.

McCaffrey told Insurance Times that MVP typically invests in good quality provincial brokers with “a real connectivity with their clients” that are SME-orientated and have a general split of around 70% commercial and 30% personal lines.

He added the company provides an alternative option to brokers who want to release equity from the business, but do not want to sell or relinquish control.

Mcaffrey said: “It fills a need for a lot of brokers, whatever age they are – they will all have individual and lifestyle reasons why they would like to release some cash, but the big thing is they still want to run to business.”