Adelis to sell Säkra in SBO to Cinven

The deal was initiated through Cinven’s relationship with the vendor and its advisor ahead of a formal process, said a source familiar with the situation. Adelis appointed Houlihan Lokey to help it evaluate sale opportunities, according to a press report in July.

The Nordic mid-market private equity firm first invested in Säkra via its Adelis Equity Partners Fund II in March 2020. The fund held its final close on EUR 600m in June 2017 with a goal to invest in small and medium-sized Nordic businesses with enterprise values in the EUR 20m-EUR 200m range, according to Unquote Data.

Since then, Säkra has acquired around 40 broker companies around Sweden, more than tripled its turnover and grew its profits, according to a press release from the vendor.

Cinven aims to accelerate the company’s growth profile through a combination of organic growth and incremental bolt-on M&A, according to an announcement from the buyer.

The acquisition of Säkra, subject to customary regulatory and antitrust approvals, marks the fourth investment from Cinven’s inaugural Strategic Financials Fund (SFF), which held its final close in July 2022 with total capital committed of EUR 1.5bn.

The fund has a life of 15 years – longer than its latest flagship fund – to allow time to build a financial services ecosystem and unlock higher returns, as reported on Unquote. In contrast with other Cinven funds, insurance companies make up about a quarter of the SFF’s investor base, including two large undisclosed European insurers drawn to their home sector.

The fund is the GP's first one focusing on the new strategy of investing in the European financial services industry; more specifically in the areas such as life and non-life insurance, wealth management, asset-backed speciality finance, insurance distributors and other ‘capital light’ tech-enabled financial service providers, according to Unquote Data and a press release from the buyer. Excluding bolt-on acquisitions, SFF expects to make six to ten standalone investments between EUR 150m-EUR 400m in size. With leverage, the enterprise value of targets can go up to EUR 600m or EUR 700m, according to Unquote Data.

SFF’ investments include the acquisitions of specialist insurance and reinsurance broker Miller, in partnership with GI; specialist global consolidator of closed books of non-life insurance policies Compre, in partnership with British Columbia Investment Management Corporation; and International Financial Group Limited, a leading life insurance provider of cross-border, long-term savings products for internationally mobile clients.

Company
Founded in 1990, Säkra is a Swedish insurance broker with a focus on life insurance, non-life insurance and financial advice, as well as pension and wealth management services to more than 35,000 SME clients and more than 115,000 individual customers, including private individuals, entrepreneurs, corporations, and the public sector. It has more than 60 offices all over Sweden with approximately 350 employees. Säkra's insurance brokers and financial advisors are approved by, among others, the Swedish Financial Supervisory Authority and Insuresec and are registered with the Swedish Companies Registration Office.

People
Cinven − Luigi Sbrozzi (partner and co-head of the SFF).
Säkra − Eva Pantzar Waage (president and CEO).
Adelis − Erik Hallert (partner).

Advisers
Equity – Citi (M&A); Arkwright (commercial); PWC (corporate finance); Alvarez & Marsal (operations/IT); Deloitte (tax DD and structuring); A&O, Vinge (legal and financing); Capstone (regulatory); Ropes and Gray (compliance); Marsh (insurance).

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• Topics
• Exits
• Nordics
• Financing
• Cinven
• Sweden
• Adelis Equity Partners