B.P. Marsh and Partners, the specialist private equity investor in early-stage financial services businesses, has completed the sale of its entire shareholding in Paladin Holdings Limited, the holding company of CBC UK Limited.
B.P. Marsh has revealed it received a £42.1 million initial cash consideration from the disposal of its 43.8% holding in Paladin, marking a £11.5 million uplift from the £30.53 million valuation as of the 31st of July, 2023.
The firm has additionally entered into a two-year £6 million loan facility with Alchemy Underwriting Limited, an entity that was owned 22.5% by Paladin, to assist its management team with a Management Buy Out as part of the overall transaction.
At the same time, Jon Newman, B.P Marsh’s Finance Director and Nominee Director on the Boards of Paladin and CBC, has resigned from his Director roles at Paladin and CBC.
B.P. Marsh observed that the investment, development and subsequent sale of its holding in Paladin demonstrates the firm’s established strategy of partnering with entrepreneurial management teams to assist their growth before reaching a management-led exit in a time frame that suits all parties.
Jon Newman commented, “This completed disposal is a further illustration of the success of the B.P. Marsh investment model that depends on our tried and tested experience and judgement as well as our strategy of wholly aligning our interests with those of management over the long term.”
“B.P. Marsh wishes the whole team at CBC all the very best for the next chapter in their growth and development in partnership with Specialist Risk Group.”
