BMS agrees investment with private equity and pension funds

Specialist broker BMS has agreed to new ’significant long-term investment’ in a deal that values the firm at £500m.

The investment comes from affiliates of pension fund British Columbia Investment Management Corporation (BCI) and mid-market private equity firm Preservation Capital Partners (PCP).

The deal is subject to regulatory approvals and is expected to close in the third quarter of the year.

Management team

The BMS management team, led by chief executive Nick Cook, will all remain in their current roles following completion.

Management and staff of BMS will also remain significant shareholders in the company following the deal.

Cook said: “The long-term investment by BCI and PCP secures our future as an independent broker and maintains significant employee ownership.

“We have grown consistently over the past five years generating revenues in excess of £100m for the first time in 2018.

“We look forward to partnering with BCI and PCP as we continue to invest in our business and attract market leading talent to the benefit of our clients. My thanks go to all of our colleagues who have been at the root of our success.”

Opportunities

Jatender Aujla, a Partner of Preservation Capital said: “We have been impressed by the growth BMS has experienced since Nick and his management team took over the business. Today, BMS is one of the largest independent specialty lines focused insurance brokers in the London market. We look forward to working with the team as long term partners and helping them seize the significant opportunities available in the market.”

Gordon J. Fyfe, CEO/CIO of BCI said: “As an investor of patient capital, we seek companies with a sustainable competitive advantage that offer value-add services and are led by talented management teams.

“BCI’s long-term investment in BMS allows them to grow the business and generate the returns that our pension plan and accident fund clients require.

“Our investment also provides regional and sector diversity to our clients’ private equity portfolio.”

Following the transaction’s completion, Pioneer Underwriters will be owned directly by the current shareholders of Minova Insurance, the holding company that had previously owned BMS.

Dane Douetil, chief executive of Minova added: “This investment is excellent news for BMS’s dedicated staff, who will remain important shareholders, and particularly for BMS clients who will continue to benefit from the very best independent advice in the market.

“It is also a ringing endorsement of the London market and, following considerable consolidation in the broking sector, ensures that an independent voice will continue to be heard.”