3i makes a 2.1x return on the sale of Hyperion stake

27 Mar 2013

3i Group plc (“3i”), an international investor, announces it has agreed to sell its 22.8% shareholding in Hyperion Insurance Group (“Hyperion”), the international insurance intermediary group, to General Atlantic.  The equity value of the transaction is £250m.  The total proceeds to 3i represent a 2.1x money multiple on 3i’s original investment of £31 million.  BP Marsh, another institutional investor, is also crystallising the value of its investment. 

3i invested in Hyperion in 2008, alongside existing investors, and has supported the management team’s international expansion strategy to roll out a specialist international insurance distribution group with strong underwriting and broking capabilities.

Since our investment, 3i has played a key role in expanding Hyperion’s business through introducing new talent to the Board and assisting in over nine strategic acquisitions and new project developments.  Key acquisitions include Hendricks in 2009, a leading D&O broker in Germany and, more recently, the much publicised Windsor acquisition in 2012, which consolidated Hyperion’s position as one of the leading global independent insurance distribution groups.

During the past five years, Hyperion’s geographic footprint expanded from 14 countries to 28 including building a strong presence in the Asia Pacific region where 25% of revenues are now generated.  In addition, the business has attracted key talent from leading competitors, with staff numbers increasing from 340 to over 1,400 over the period.  Hyperion’s revenue has also grown from £42m prior to our investment to over £110m million for the financial year ending 30 September 2012 with the business achieving a market leading organic profit growth of over 15% CAGR over the period with over 50% of its activities now diversified outside Europe.

David Whileman, 3i Partner and Managing Director UK, commented:  “Hyperion’s strong performance against its peers is underpinned by the importance it places on its people and the attraction and retention of talent. It has been a great privilege to serve on the Board and assist the company during what has been a defining chapter in its development”

David Howden, Chief Executive and Founder of Hyperion said: “For a rapidly growing business, finding a minority equity investor who fits culturally and adds genuine value is critical. In the last five years we have had exactly that from 3i who have helped the business in partnership with our original investors.”

This transaction follows 3i’s sale of Mold-Masters and most recently its stake in Giraffe.  Proceeds to 3i from today’s transaction will be approximately £46m, against an opening value at 31 March 2012 of £34m and a value of £41m at 31 December 2012.  The overall transaction is subject to final shareholder and regulatory approvals, and so the cash is not expected to be received before 31 March 2013.

For further information, contact:

3i Group plc
Kathryn van der Kroft
Tel: +44 20 7975 3021
Email: kathryn.vanderkroft@3i.com

Notes to editors:

About 3i Group plc

3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit www.3i.com.

About Hyperion Insurance Group

Hyperion is an international insurance intermediary group with divisions in broking and underwriting.  The Group has businesses across Europe, Asia Pacific, the Middle East, the USA and Latin America, employing more than 1,400 people in 67 offices operating out of 28 countries.

In 2012, Hyperion was awarded its second Queen’s Award for Enterprise in International Trade.

www.hyperiongrp.com

 

Regulatory information

This transaction involved a recommendation of 3i Investments plc.