Penta Capital success on the IPO of Esure
Penta Capital LLP (“Penta Capital”) has today announced the successful IPO of its investee company, esure Group plc (“esure”), for a market capitalisation of £1.2bn.
Penta Capital LLP arranged and led the equity investment in the MBO of esure from Lloyds Banking Group in February 2010 for £190m. This was entirely funded through Tosca Penta Investments LP, a single purpose fund raised and managed by Penta Capital LLP.
Tosca Penta Investments LP has sold shares worth £305m upon the IPO and retains an 11.6% stake in esure worth £140m. It has also provided further options to sell shares worth £90m under the Over- Allotment Option which, if fully exercised, would reduce its stake to 4.1%
The investment in esure was managed by David Calder and Charles Schrager of Penta Capital who have been directors of esure since the MBO.
David Calder said:
“We are delighted to have backed Peter Wood and his team at esure on the most recent phase of their journey from a startup in 2000 to a FT250 company in 2013. This IPO is testimony to the strength of the company, its brands and most importantly its management and staff who deserve all their success.”
Charles Schrager added:
“The IPO exit, together with earlier returns of capital, will generate a money multiple of over 3.3x for Tosca Penta Investments LP. This is a great endorsement of Penta Capital’s model of sourcing high quality off-market investments and funding them on a deal by deal basis from our growing base of direct co-investors. We believe this will increasingly be the model of choice for private equity investors”
Conditional dealings in the shares of esure commence today, 22 March 2013 and unconditional dealings are expected to commence on 27 March 2013.