Insurance venture capital firm raises new capital for acqusitions

Insurance venture capital investor BP Marsh has sold a 19.6% stake in the firm to PSC Insurance Group (PSI), an Australia-based acquisitive broking group headed by former Oamps and QBE executives. 

BP Marsh raised £15.5m in new capital from a placing with PSI, and sold PSI a further £1.5m in shares previously held by a company owned by chairman Brian Marsh. Brian Marsh owns about 45% of the company following the capital raising. 

BP Marsh said the capital will be used to “grow the company’s existing portfolio and continue investing in early stage finacial services intermediary businesses with the aim of becoming the capital provider of choice for the sector.”

PSI, whose operations are centred about 66% in Australia and New Zealand and 33% in the UK, describes itself as a diversified SME broking group with a portfolio of businesses ranging from startups to mature businesses. 

It is headed by chairman Brian Austin, former chief executive of Oamps, and managing director Paul Dwyer, former senior executive with Oamps.

”BP Marsh is a world class investor in insurance intermediary assets and businesses, and have a very strong management team,” Dwyer said on the announcement of PSI’s investment.

”We expect to be a long term investor, and expect over time for there to be numerous collaboration opportunities. The investment in BP Marsh is likely to broaden the global horizons of PSI over time”, commented Mr Paul Dwyer, Managing Director of PSI. 

Last October, Brian Marsh said BP Marsh was entering a period of consolidation after an active six months of acquisitions.