KKR invests in CVC's French insurer April Group

Rachel Lewis
28 November 2022

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KKR is acquiring a majority stake in April Group, a French insurance broker backed by CVC since 2019.

April said in a statement it had achieved its objectives more than a year in advance, pointing to a EUR 544m turnover in 2021, double-digit growth dynamics for 2022 and a nearly 20-point rise in its Net Promoter Score (NPS).

According to media reports, the deal was expected to value the company at around EUR 2.3bn.

CVC mandated Rothschild and Deutsche Bank to explore an exit earlier in the year, as reported. April was expected to be valued at 17x-18x EBITDA and registered between EUR 130m-EUR 145m EBITDA.

As well as KKR, Cinven, PAI, Carlyle and Advent were among the sponsors said to be eyeing the asset, as reported by sister publication Mergermarket.

The new investment will enable April to accelerate its development and digitalisation for borrowers, health and personal protection, niche property and casualty, international health insurance and wealth management in France and internationally, according to the statement.

CVC helped the group refocus its activities around insurance distribution and carried out an in-depth transformation of its business model that enabled the group to return to a high level of performance.

With the transaction subject to legal and regulatory approvals, this could be the first full exit from the sponsor's 2017 vintage, CVC Capital Partners VI I. The GP took private April for EUR 900m in January 2019.

It earlier shelved an exit of Dutch compliance services group TMF, as reported by Mergermarket, instead bringing in Abu Dhabi Investment Authority as a minority investor.