On 22 March 2013 Electra Private Equity PLC (“Electra”) announced an uplift in Electra’s diluted NAV per share of 33p* as a result of the successful IPO of UK motor insurer esure, its third largest investment at 30 September 2012.
In 2010, Electra invested £30 million (via the Tosca Penta Investments LP fund) in the management buyout of esure from Lloyds Banking Group, led by Peter Wood, founder and Executive Chairman of esure. £15.3 million of Electra’s original investment had been repaid prior to the IPO.
As a result of esure’s IPO, Electra is due to receive further cash proceeds of £51.5 million. In addition, Electra (via its holding in the Tosca Penta Investments LP fund) will hold 6.19 million ordinary shares in esure which, at the IPO price, had a valuation of £17.9 million.
Including income, this investment has generated a gross return of 3x original cost for Electra; an IRR of 48%.
Tim Syder, Deputy Managing Partner at Electra Partners, said:
“esure has been an excellent investment for Electra Partners. At the time of the MBO in 2010, it was clear we were backing an entrepreneur with a proven track record and investing in a business with highly recognisable brands at what appeared to be a favourable point in the insurance cycle. The success of the IPO is strong testament to Peter and his team in developing the business over the last three years.
“esure is a good example of what we are keen to do: support companies that are able to prosper from the benefits of independent ownership and a fully motivated management team.”
Tim Syder and Sarah Williams were responsible for the investment in esure.
This follows a busy start to 2013 for Electra Partners in which it has announced two major investments: a £114 million binding offer to acquire a portfolio of UBM plc’s data services businesses and a £56 million investment in a portfolio of five secondary private equity funds.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
* Uplift from the audited accounts at 30 September 2012 as well as the Interim Management Statement at 31 December 2012.
For further information please contact:
For Tim Syder:
Nick Woods, M:Communications +44 (0)20 7920 2348
Andrew Kenny or Nicholas Board, Electra Partners +44 (0)20 7306 3932
Note to Editors:
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 30 years’ experience in the mid-market buyout sector. As at 30 September 2012, the firm had funds under management of over £1.3 billion. The firm's flexible investment approach allows it to invest across a broad range of sectors and financial instruments including equity, senior equity, convertibles and mezzanine debt. Concentrating principally on Western Europe, and with the majority of investments expected to be made in the United Kingdom, Electra Partners typically seeks to invest in the region of £40 to £100 million of equity, in deals of up to £300 million enterprise value.
The firm's major client is Electra Private Equity PLC, a private equity investment trust which has been listed on the London Stock Exchange since 1976. The firm also manages the Electra Partners Club 2007 LP, a fund raised in 2008 for the sole purpose of investing alongside Electra in controlled investment situations.
For further information please visit www.electrapartners.com.
Electra Partners LLP is authorised and regulated by the Financial Services Authority.