LONDON,UK:B.P. Marsh and Partners Plc, a specialist private equity investor in early stage financial services businesses, has acquired a 35% Cumulative Preferred Ordinary shareholding in Verve Risk Services Limited, a London-based Managing General Agency that specialises in Professional and Management Liability business for the insurance industry in the USA, Canada, Bermuda, Cayman Islands, and Barbados.

B.P. Marsh provided £1m of funding through a mixture of equity and a loan facility, which will be drawn down in full upon completion as part of a management buy-out. Scott Simmons and Alan Lambert, who founded Verve in 2016, will continue as joint co-founders and directors of the company, with management owning the remaining 65% of Verve. Simmons and Lambert have a combined experience of over 45 years in underwriting US management and professional liability lines, having previously worked for AIG and established a US professional and management liability unit with Aquila Underwriting.

The investment by B.P. Marsh will support Verve’s growth plans and its diversification into additional product lines, ultimately developing the company into a highly specialised underwriting agency with wide market recognition. The management team of Verve sees B.P. Marsh as the perfect partner to assist in bringing about this growth, stating that the team brings a significant amount of insurance experience and expertise, and more than just a financial investment.

Dan Topping, Chief Investment Officer of B.P. Marsh and Partners, commented on the investment, saying: “We are very pleased to partner with a motivated Management Team with a long-established business, a strong client base and significant upside potential. We look forward to working with Scott and Alan over the coming years in developing the business.”

The acquisition by B.P. Marsh comes at a time when private equity firms are increasingly looking to invest in specialty insurance, a market that has shown resilience during the COVID-19 pandemic. The investment firm has a history of successful investments in specialty insurance and reinsurance, including AEC Group Limited, Nexus Underwriting Management Limited, and Hyperion Insurance Group Limited.