Synova backs AllClear in MBI

Greg Gille
15 January 2018

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UK-based mid-market investor Synova Capital has backed the management buy-in of AllClear, a travel insurance broker focused on customers with pre-existing medical conditions.

The deal was made on an all-equity basis, unquote" understands.

Chris Rolland, the former CEO of Staysure and American Express Insurance Services, joined the business as part of the transaction. AllClear's founders will reinvest part of their proceeds and remain with the business as non-executive directors.

Synova had identified the senior-focused segment within the wider financial services space as a promising theme. The GP built a relationship with Rolland and identified a number of potential investments, with AllClear being top of the list.

Synova managing partner David Menton and investment manager Matthew Charman also joined AllClear's board as a director.

The GP is currently investing from Synova III, which closed on £250m in 2016; this marks the fourth investment for the vehicle, which is believed to be deployed at around 50%. The fund typically invests between £10-30m in UK companies, valued at between £10-100m.

Company
Established in 2001 and based in Romford, AllClear is a travel insurance broker for people with pre-existing medical conditions, typically in the over-55 segment. The business is active in the UK, Ireland and Australia, and operates through direct distribution, white label partnerships, and its own price comparison website.

According to publicly available information, AllClear posted a £12m turnover in the financial year ending in March 2017, with operating profit amounting to £327,000 on the back of high marketing spend. This is understood to have changed significantly in the most recent period, with current EBITDA of around £3m.

People
Synova Capital – David Menton (managing partner); Matthew Charman (investment manager).

Advisers
Equity – Deloitte (financial due diligence, tax, corporate finance); OC&C (commercial due diligence); Addleshaw Goddard (legal); Intuitus (IT due diligence).
Vendors – Birketts (legal).