3i partners with leading global insurance group, Hyperion

02 Apr 2008

3i, a world leader in private equity, announces a new partnership with Hyperion, a leading international insurance group, investing for a minority shareholding in the company in a deal valuing the business in excess of £120m.

3i will support Hyperion as it enters its next phase of growth - expanding both the range of products it provides and the territories in which it operates.  3i is seeking to bring value through additional funding, its global contacts and strategic counsel based on experience in the sector. 

Founded in 1994 by David Howden, Hyperion focuses on a range of specialist insurances including Professional Indemnity and Directors’ and Officers’ Liability through its subsidiaries: Howden, DUAL and CFC. The Group now serves clients in 50 countries with offices throughout Europe, Scandinavia, the Middle East, Asia, the Americas and Australia. The Hyperion Insurance Group has achieved an impressive annual growth rate of approximately 40% since inception. 

David Howden, Chief Executive of Hyperion, said of the transaction: “In choosing 3i as our partner, it was important to us that they embraced the entrepreneurial spirit of our group and shared our ambition to build a world-beating specialist insurance business. I believe they will enhance our entrepreneurial flair and ability to continue to attract and retain the very best people. 3i’s long established brand, global network and considerable management expertise, combined with its financial strength, will help us to achieve a faster pace of international growth, both organically and through acquisitions.”

Gordon Hague, 3i Director added: “We at 3i Growth Capital are thrilled to be backing Hyperion: a global success story and a leader in the specialist insurance sector. We have been impressed with the entrepreneurialism and quality of people at every level.  This is an outstanding management team and we are confident that 3i can bring immense value based on our experience within the financial services sector and our track record partnering with ambitious businesses to drive growth globally. This investment is typical of 3i Growth Capital’s partnership style; equity rather than debt, full alignment of interests, an entrepreneur who retains control of the business, with 3i bringing the value of our international network to support the next phase of business growth."

This builds on 3i Investment Plc’s expertise in the financial services sector, with investments in Jelf Group, ACR, BestInvest, Fulcrum, KNEIP and Gain Capital amongst others in the last 18 months. 

Notes to editors

About Hyperion
Established in 1994 and headquartered in the City of London, Hyperion Insurance Group is a fast expanding, independently owned insurance and underwriting company. Since our inception we have grown to become a leading global provider of a range of specialist insurances. Comprising offices in 16 countries and employing over 500 people, our Group was awarded a Queen’s Award for Enterprise in International Trade in April 2007. Hyperion has been ranked for the second year running in the 2008 Sunday Times Buyout Track 100. We were also ranked 27th in the 2007 Insurance Times Top 50 UK Brokers league table and 13th in Post Magazine’s 2007 Top 25 City Brokers report.  Hyperion is also backed by specialist private equity investor, BP Marsh & Partners PLC, and Murofo Investments SL.www.hyperiongrp.com

About 3i

3i is a world leader in private equity and venture capital.  We focus on buyouts, growth capital and venture capital and invest across Europe, in the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business.  These underpin the value that we deliver to our portfolio and to our shareholders.  
3i Growth Capital is the world’s largest growth capital fund investing over US$3bn every year in businesses across Europe, Asia and the US.  We provide financial and strategic support to established businesses with the potential for outstanding value growth. We typically invest up to €250m in businesses to help achieve growth ambitions, restructure shareholdings, release equity or change the balance of equity to debt and are committed to working in partnership with majority shareholders. 
3i’s recent investments include: Foster + Partners (UK); KNEIP (Luxembourg), Delta Hydrocarbons (Benelux), UFO Moviez (India), Electrawinds (Benelux), DNA (Finland),  ACR (Singapore), Fulcrum (US), Giraffe (UK), Little Sheep (China), Sten (Spain) and Advanced Power (Switzerland).  Recent successes include Grand Frais (France),  SeLoger.com (France), Alimak Hek (Sweden), Salamander Energy (UK), CH4 Energy (UK), Magix (Germany), Williams Lea (UK) and Hayley Conference Centres (UK).