Cinven Partners LLP is buying Premium Credit Ltd. for £462 million (U.S. $700 million) from Chicago private equity firm GTCR.
Surrey, England-based Premium Credit is an insurance premium financing company that operates in the U.K. and Ireland. The company works with insurance brokers and carriers to help individuals and businesses pay insurance premiums in installments instead of a single annual payment. Premium Credit also provides payment facilitation and financing services for professional fees, school fees, membership subscriptions and other services.
Cinven, headquartered in London, is a private equity firm with offices in Guernsey, Frankfurt, Paris, Milan, Luxembourg and Hong Kong. The firm looks to invest $118 million or more in European companies in the business services, consumer, financial services, health care, industrial and technology, media and telecommunications sectors.
GTCR partnered with CEO Andrew Doman in October 2012 to acquired Premium Credit from MBNA Europe Ltd., a Bank of America Corp. (NYSE: BAC) subsidiary. The private equity firm focuses on investing in financial services and technology, health care and information services and technology industries. The group makes investments based on the Leaders Strategy, under which it finds and partners with executives to build companies through acquisitions and organic growth. For more, see our profile of the firm from when it won our M&A Mid-Market Private Equity Firm of the Year award for 2013.
J.P. Morgan Ltd. served as Premium Credit's financial adviser, while Kirkland & Ellis LLP provided legal advice.