Beech Tree invests in Avid

Katharine Hidalgo
21 August 2019

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Beech Tree Private Equity has taken a majority stake in insurance intermediary and managing general agent Avid Insurance.

Beech Tree will draw equity from its Private Equity Fund II, which closed on £115m in 2017. The fund writes equity cheques of £10-40m. Avid is the firm's seventh platform acquisition.

The deal is to be funded around 80% by equity from Beech Tree with the remainder funded by debt financing provided by Clydesdale Bank.

Beech Tree managing partner Andy Marsh and investment manager Ben Cartwright will join the company's board, while the company's management will continue to lead it in the future. The management have also reinvested in the newco.

The fresh capital will be used to expand organically and invest in new underwriting teams for the company, while also funding new product line development. The firm could also possibly implement a buy-and-build strategy, according to Marsh.

The company generates less than £25m in revenue.

Company
Avid manages and prices risk for insurers, with a specialisation in the travel and social housing sectors. The company acts as both a Lloyd's broker and cover holder. Founded in 2006, the company is based in London and also operates in Leeds. It employs 12 people, according to LinkedIn.

People
Beech Tree Private Equity – Andy Marsh (managing partner); Ben Cartwright (investment manager).
Avid Insurance – Stephen Gibson (managing director).

Advisers
Equity – Dow Schofield Watts, Catriona Lang, Ed Brentnall, Rob Parker (financial due diligence); DLA Piper, James Kerrigan, Christopher Wilson, Alexandra Holden (legal); PwC, Nick Hatton, Catherine Kay, Callum Lee (tax); KPMG, Mark Flenner, David Stokoe, Andrew Francis (corporate finance).
Company – RSM, Natalie Ord, Russell Jones (corporate finance); Trowers & Hamlins, Alison Chivers, Moad Giebaly, Adrian Jones (legal); RSM, Helen Relf (tax).