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(Sharecast News) - BP Marsh announced on Monday that it has increased its stake in Pantheon Specialty Group, acquiring an additional 2% shareholding at an equity valuation of 275m.
The AIM-traded firm said the purchase, made from founders Robert Dowman and Michael Lee, took its total stake in the growing insurance broker to 39%.
Alongside the equity acquisition, BP Marsh said it had provided Pantheon with a 5m revolving loan facility, of which 3.5m was drawn at completion.
The funding was intended to support Pantheon's continued growth, including organic expansion, strategic hires, and opportunistic merger and acquisition activity.
"BP Marsh has been a true partner to Pantheon since day one, sharing our vision for building a best-in-class specialist broker," said Robert Dowman, founder and CEO of Pantheon.
"Their ongoing support, both in equity and growth capital, enables us to remain agile and opportunistic as we continue expanding our capabilities and strengthening our market position."Pantheon, which launched in June 2023 with backing from BP Marsh, had quickly established itself as a leading independent broker in the Lloyd's and London insurance markets, BP Marsh said.
The business had expanded from its initial focus on global casualty and professional lines to include global property, Innovation and technology, and delegated authorities.
It was on track to achieve adjusted EBITDA of 18m in the current financial year to 31 December, with headcount expected to reach around 50.
BP Marsh noted that the valuation of its stake in Pantheon had increased by 150% over the last financial year.
The latest investment was funded from the group's existing cash reserves.
"Since our initial investment, Pantheon has exceeded expectations in terms of both financial performance and strategic execution," commented Dan Topping, chief investment officer of BP Marsh and a nominee director on Pantheon's board.
"The leadership team has built a business that has already gained serious traction in the London insurance market.
"We remain highly confident in Pantheon's continued trajectory and are excited to support the next phase of its growth."
At 1149 BST, shares in BP Marsh & Partners were up 1.26% at 708.8p.
Reporting by Josh White for Sharecast.com.