GTCR has acquired Premium Credit, a provider of third party insurance premium finance services in the UK and Ireland, from MBNA Europe, a subsidiary of Bank of America Corporation. GTCR’s investment in Premium Credit was funded from GTCR Fund X, a private equity fund raised in 2011 with $3.25 billion of committed capital.
GTCR is partnering with new CEO Andrew Doman and the existing management of Premium Credit to recapitalize the company and further invest in the company’s technology and services offerings. Mr. Doman is the former Chairman and CEO of Russell Investments and Head of Insurance Consulting at McKinsey & Co. London. “GTCR’s investment is a strong endorsement of the attractive business built by Premium Credit’s management and employees over many years,” said Mr. Doman. “Premium Credit has strong customer relationships and a tremendous quality of service orientation. I am excited to join such a talented team and look forward to growing the franchise.”
Premium Credit works in partnership with a network of insurance brokers and carriers to enable businesses and individuals to pay insurance premiums in installments rather than a single annual payment. The company also provides payment facilitation and financing services for professional fees, school fees, membership subscriptions and other commercial services. Across its business lines, Premium Credit participates in processing and funding more than 22 million transactions annually associated with approximately £3 billion in payment volume for approximately 2 million customers. The company was founded in 1988 and is headquartered in Epsom, Surrey, UK with a second office in Dublin, Ireland (www.premium-credit.co.uk).
“We are thrilled to complete the acquisition of Premium Credit. Our extensive experience in insurance services, payment processing, and specialty finance provides GTCR with a unique perspective on the company and its opportunities going forward,” said Collin Roche, Managing Director at GTCR. “We look forward to supporting Andrew Doman and the management team’s efforts to drive product expansion and continued technology investment in Premium Credit’s operations and service delivery. We will also selectively evaluate building on the company’s success through acquisitions as well as geographic expansion opportunities in Europe and North America.”
The acquisition of Premium Credit was supported by a consortium of banks including Barclays Capital, Lloyds Banking Group, Deutsche Bank, HSBC and Société Générale. Barclays Capital and the Kessler Group advised GTCR on the transaction. Kirkland & Ellis and Mayer Brown International served as legal counsel to GTCR.
GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $7 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. GTCR is based in Chicago (www.gtcr.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 11-1-12
