B.P Marsh Makes Investment in XPT Group

The latest update from B.P. Marsh for you;

B.P. Marsh & Partners Plc (AIM: BPM), the specialist private equity investor in early-stage financial services businesses, is pleased to announce that it has made a complementary investment in support of its US-based investee company, XPT Group LLC (“XPT”), through the formation of Gambit Risk Finance LLC (“Gambit Re”), a newly formed reinsurance vehicle for selected XPT underwriting programmes.

This initiative is designed to support XPT’s strategic growth ambitions and to enhance its operational and financial flexibility.

Gambit Re is a newly created reinsurance entity which will enable XPT’s Underwriting Arm, Platinum Specialty Underwriters (“Platinum”), to provide limited risk capital to selected underwriting programmes within Platinum’s insurance portfolio, supporting its expansion. The vehicle will operate on a fully collateralised basis.

B.P. Marsh has committed a maximum of $5m to Gambit Re, of which $1.875m will be funded on completion. In return, B.P. Marsh will receive a preferred equity shareholding of c. 8%, which carries an 8% preferred annual return.

Gambit Re will initially support five profitable Platinum programmes across its underwriting portfolio.

The vehicle is expected to deliver a strong risk-adjusted return, underpinned by Platinum’s historical underwriting discipline.
Gambit Re’s capital structure is comprised of $60m of preferred equity, with participation from:

• Accord Capital Investments (“Accord Capital”) ($45m);
• RSP, a vehicle formed by XPT senior management ($10m); and
• B.P. Marsh ($5m).

Accord Capital is a US-based alternative lending and capital advisory firm, based in Chicago. Accord Capital’s mantra is to offer strategic capital and operational guidance to entrepreneurial teams from early-stage startups to mature enterprises. Management and operational services will be provided by Platinum, with reinsurance administration outsourced to Atlantic Security Limited, a Bermuda-based specialist.

B.P. Marsh sees this as an opportunity to support one of its experienced management teams with a track record in the sector, backed by strong investors. We are confident that Gambit Re can deliver long term returns to our shareholders, further building on our ability to source and make unique investment opportunities in the insurance sector, alongside our primary focus on insurance distribution investments.