Bowmark sells Aston Lark to Goldman Sachs

Kenny Wastell
20 May 2019

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Bowmark Capital has agreed to sell UK-headquartered insurance brokerage Aston Lark to Goldman Sachs.

Financial details of the transaction remain undisclosed, though Unquote understands the deal gives the business an enterprise value of £320-350m.

Bowmark was invested in Aston Lark via £375m vehicle Bowmark Capital Partners V, which closed in 2014. It is also understood that the sale generated strong returns for the fund.

Aston Lark will become part of Goldman Sachs' merchant banking division following the deal.

The transaction comes 20 months after the GP supported the merger of Aston Scott Group (then already a portfolio company) with Lark Group. The company made 13 bolt-ons under Bowmark's tenure, most recently acquiring Jobson James, a brokerage that focuses on corporate insurance, private client insurance and employee benefits.

A spokesperson for the GP declined to comment on the deal beyond the contents of the official announcement.

The transaction is expected to complete imminently, with antitrust approval and approval from the Financial Conduct Authority and the Central Bank of Ireland already secured.

Previous funding
Bowmark supported the management buyout of Aston Scott in 2015, following which the company's founder, Andrew Scott, retained a significant holding in the business.

Two years later, a new holding company was established to acquire the entire share capital of Lark Group and Aston Scott, with the consolidated group subsequently rebranding as Aston Lark.

Company
Founded in 2017 via the merger of Aston Scott and Lark, London-headquartered Aston Lark provides insurance brokering and employee-benefit-related services. The group spans a broad range of commercial and personal insurance verticals including cyber-risk, film and television production, haulage and logistics, home contents, holiday home and automotive insurance.

Aston Lark operates from 27 regional UK offices, has a client base of around 100,000 and places around £350m of annual premiums, according to a statement.

People
Bowmark Capital – Julian Masters (partner).
Aston Lark Group – Peter Blanc (CEO).
Goldman Sachs Merchant Banking – Michele Titi-Cappelli (head of financial services investing).

Advisers
Vendor – Livingstone Partners (corporate finance); Macquarie Capital (corporate finance).