UK headquartered brokerage BMS Group has announced that it’s secured a significant investment from British Columbia Investment Management Corporation (BCI) and Preservation Capital Partners (PCP).
The investment values BMS at £500 million (USD 636 million) and is expected to close in the third-quarter of 2019, subject to regulatory approvals.
The BMS management team, which is led by Chief Executive Officer (CEO) Nick Cook, will remain in their current positions following the completion of the transaction. At the same time, BMS management and staff will remain significant shareholders in the firm.
Cook, commented on the transaction: “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 5 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.”
Furthermore, it’s been revealed that once the transaction is complete, Pioneer Underwriters will be directly owned by the current shareholders of Minova Insurance, the holding company that had previously owned BMS.
Minova Insurance CEO, Dane Douetil, said: “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.”
CEO and CIO of BCI, Gordon Fyfe, commented: “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.”
And Jatender Aujla, a Partner of PCP, added: “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.”