Bowmark fully exits Aston Lark in Howden sale

Greg Gille
13 October 2021

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Insurance broking group Howden has agreed to acquire UK-based peer Aston Lark from Goldman Sachs Asset Management and Bowmark Capital.

The deal was designed to further build up Howden's UK broking business, with Aston Lark joining A-Plan Group and Howden UK to create a full-service broker. It is Howden's largest acquisition to date, the buyer said, creating a UK business managing more than GBP 6bn in gross written premiums for more than 1.7 million policyholders.

Bowmark has now fully exited the business, with returns remaining undisclosed. The GP 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.

In mid-2019, Bowmark sold a majority stake to Goldman Sachs' Merchant Banking division, while reinvesting in the new structure. Financial details of the transaction remain undisclosed, though Unquote reported at the time that the deal gave the business an enterprise value of around GBP 320m.

Bowmark was originally invested in Aston Lark via GBP 375m vehicle Bowmark Capital Partners V, which closed in 2014; the 2019 reinvestment came from the GP's following fund, Bowmark VI.

The GP said that, since the original investment, the company went on to make 50 acquisitions, with employee numbers growing eightfold to 1,600 today.

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 homes, and automotive insurance. It has placed more than GBP 1bn in gross written premiums for 200,000 clients.

People
Bowmark Capital – Julian Masters (managing partner), David Torbet (partner), Tom Elliott (partner).
Goldman Sachs Asset Management – Michele Titi-Cappelli (managing director).

Advisers
Vendors – Goldman Sachs (M&A); Macquarie Capital (M&A); Latham & Watkins (legal).
Management – Eversheds Sutherland (legal); PwC (financial due diligence); Jamieson Corporate Finance (corporate finance); DLA Piper (legal).
Acquirer – Weil Gotshal & Manges (legal); Norton Rose Fulbright (legal); PwC (financial due diligence).