Connection Capital supports MBO of insurer Tempcover
2 January 2018
Connection Capital has backed the £13.3m (€14.9m) management buyout of short-term insurance business Tempcover.
The firm has provided £7.5m of the total MBO package. A £5.75m debt facility has been supplied by Santander. Connection becomes the latest in a long line of buyout houses to tap the insurance market.
Tempcover specialises in policies of up to 28 days, typically for car and home cover. It wrote more than 360,000 policies last year, accounting for 60 per cent of the short-term insurance market.
Connection Capital said a decline in third party cover and the growth of the gig economy are driving demand for temporary insurance.
The firm has backed a buyout led by chief executive Alan Inskip. It has also introduced insurance industry veterans Peter Barrett and Christian Young from its network of investors, who will serve as chairman and non-executive director respectively.
Gateley, Crowe Clarke Whitehill, Compliance Management Services, Heuris Consulting and Vista Insurance Brokers advised Connection Capital. Cavendish Corporate Finance and Squire Patton Boggs advised the vendor. Golwing WLG offered legal advice to Santander.
A version of this article appeared in Real Deals on 2 January 2018.