LONDON: British venture capital firm B.P. Marsh & Partners Plc (BPM.L) said on Tuesday it has agreed to sell its entire 28.2% stake in Canadian insurer Stewart Specialty Risk Underwriting Ltd. (SSRU) to Ryan Specialty Holdings Inc (RYAN.N) for a cash consideration that could reach up to 62 million Canadian dollars (£33.2 million).
The initial consideration for the stake is CAD $51.9 million (£27.8 million), net of transaction costs, the company said. A further performance-related deferred payment of up to CAD $24 million is payable to SSRU’s shareholders in 2026.
The sale to U.S.-based insurance distributor Ryan Specialty delivers a significant return for B.P. Marsh, which made a nominal equity investment of just CAD $30 alongside a loan when it first backed SSRU as a startup in 2017.
The deal represents an internal rate of return of 89.8% for B.P. Marsh and a 21% uplift, or £4.9 million, from the investment’s carrying value in its portfolio as of July 31, 2025.
SSRU, a Toronto-based managing general underwriter founded in 2016 by Stephen Stewart, provides specialty commercial insurance across Canada.
Dan Topping, Chief Investment Officer of B.P. Marsh, described SSRU as “an outstanding performer within our portfolio” and a testament to the leadership of Stephen Stewart.
“The sale represents an excellent return for our shareholders and reflects our strategy of partnering with exceptional management teams to build market-leading businesses,” Topping said.
Stephen Stewart, President & CEO of SSRU, said B.P. Marsh had been a “true partner” since its founding. “Joining Ryan Specialty marks an exciting new chapter for SSRU,” he added.
B.P. Marsh said it intends to use the proceeds from the disposal to pursue new and follow-on investment opportunities in the financial services sector, while also considering dividend payments and potential share buy-backs.