REG - B.P. Marsh &Partners - Follow on Investment – Pantheon Specialty Group

B.P. Marsh & PartnersAnnouncement

29/10/2024 12:45

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RNS Number : 0872K  B.P. Marsh & Partners PLC  29 October 2024

29 October 2024

 

B.P. Marsh & Partners Plc

("B.P. Marsh", "the Company" or "the Group")

 

Follow on Investment - in Pantheon Specialty Group Limited ("Pantheon")

 

B.P. Marsh and Partners Plc (AIM:BPM), the specialist private equity investor
in early stage financial services businesses is pleased to announce that it
has acquired a further 5% shareholding in Pantheon Specialty Limited
("Pantheon") from eight members of Pantheon's Management team, for cash
consideration of £12.5m.

 

B.P. Marsh first invested in Pantheon in June 2023, when it subscribed for a
25% stake in a new holding company established in partnership with Robert
Dowman. Following launch, Robert Dowman was joined by Michael Lee, as Managing
Director.

 

Following initial investment, B.P. Marsh acquired a further 7% from Management
in May 2024, increasing our shareholding to 32%.

 

Since Pantheon was established, just over one year ago, Robert Dowman and
Michael Lee have hired a number of key individuals, with Pantheon quickly
being recognised as a leading London market broker.

 

Since the Group's investment, Pantheon has delivered strong performance, and
in its current financial year to 31 December 2024, Pantheon is forecast to
produce an adjusted EBITDA in excess of £16m. Both the Pantheon team and
B.P. Marsh remain confident that this positive momentum will continue into
2025 and beyond.

 

The acquisition of an additional 5% stake in Pantheon will raise the Group's
total shareholding to 37%. Upon completion, these shares will be converted
into Preference Shares, accompanied by the Group's standard shareholder
protections. The transaction has been financed using the Group's existing cash
reserves.

 

This transaction enables Pantheon's Management team to partially liquidate a
portion of their shareholding, providing them with personal liquidity, while
still retaining a significant majority stake. This structure ensures continued
alignment of interests across the shareholder base, a key factor that has been
central to Pantheon's strong performance to date.

 

This additional equity purchase demonstrates the Group's confidence in
Pantheon's future growth prospects. As announced in the Group's most recent
set of results for the half year to 31 July 2024, the valuation of the Group's
stake in Pantheon increased by 48% over the prior six months. The Group has
made this further acquisition with the confidence that Pantheon will maintain
its robust performance in the future.

 

Dan Topping, B.P. Marsh's Chief Investment Officer and nominee Director on the
Board of Pantheon stated:-

 

"B.P. Marsh has a long-standing relationship with both Robert Dowman and
Michael Lee, each of whom has a strong, proven track record in growing
businesses. Pantheon's exceptional performance since its formation just 16
months ago is a clear example of this, as the company has rapidly become a
leading independent broker in the London market.

 

In line with B.P. Marsh's mantra, we believe that the acquisition of an
additional 5% stake in Pantheon offers a well-earned liquidity event for
Pantheon's management team, while also giving B.P. Marsh the opportunity to
increase its investment in a rapidly growing company.

 

We are excited to continue our work with Pantheon's management in the coming
year, supporting the company's ongoing growth, which should, in turn, generate
significant returns for our shareholders."

 

Robert Dowman, the Founder and CEO of Pantheon commented:-

 

"The team here is immensely proud of what Pantheon has achieved since
launching the business.

 

B.P. Marsh's support has been instrumental to this success, allowing us to
quickly drive growth.

 

I see this liquidity event as a continuation of B.P. Marsh's commitment and
support for Pantheon, rewarding management for their achievements while
ensuring that all shareholders remain focused on the long-term success of the
business for many years to come."

 

For further
information:

 

 B.P. Marsh & Partners Plc                           www.bpmarsh.co.uk (http://www.bpmarsh.co.uk/)
 Brian Marsh OBE                                     +44 (0)20 7233 3112

 Nominated Adviser & Joint Corporate Broker

 Panmure Liberum Limited
 Atholl Tweedie / Amrit Mahbubani / Ailsa MacMaster  +44 (0)20 7886 2500

 Joint Corporate Broker

 Singer Capital Markets Advisory LLP
 Charles Leigh Pemberton / James Moat / Asha Chotai  +44 (0)20 7496 3000

 Financial PR & Investor Relations
 Tavistock                                           bpmarsh@tavistock.co.uk
 Simon Hudson / Katie Hopkins                        +44 (0)20 7920 3150

 

Notes to Editors:

B.P. Marsh's current portfolio contains sixteen companies. More detailed
descriptions of the portfolio can be found at www.bpmarsh.co.uk
(http://www.bpmarsh.co.uk/) .

 

Since formation over 30 years ago, the Company has assembled a management team
with considerable experience both in the financial services sector and in
managing private equity investments. Many of the directors have worked with
each other in previous roles, and all have worked with each other for over ten
years.

- Ends -

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