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Penta Capital nets 3.3x return through esure IPO

22 Mar 2013

exit 15_sqPenta Capital has partially exited its stake in UK-based car insurer esure Group via an IPO, which together with earlier returns has generated a 3.3x cash multiple.

Penta led the management buyout of esure from Lloyds Banking Group in February 2010 for £190m.

The firm’s Tosca Penta fund has now sold shares worth £305m via the IPO – which valued the business at £1.2bn – to retain an 11.6 per cent stake worth £140m.

Penta also holds an option to sell a further £90m worth of shares, which would reduce its interest to 4.1 per cent.

The MBO was also backed by Electra Private Equity, which invested £30m and will receive £51.5m following the IPO in addition to £15.3m that has already been repaid, retaining a stake worth £17.9m.

Charles Schrager, Penta founding director, said, “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.”

Esure announced its decision to float in February a week after it was reported that Esure hired brokers Numis and Canaccord in connection with the prospective listing to add to its existing brokers Deutsche Bank and JPMorgan Cazenove.

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