Connection Capital exits Tempcover to RVU for 5x money

The sale has returned over 5x money, said Connection Capital. The firm invested GBP 7.5m in a GBP 13.3m management buyout in 2018. 

Over the ownership, Tempcover has added multiple new underwriters to its insurer panel, doubled its number of employees to 51, as well as improved its loss ratio and conversion rates on the website.

Tempcover had revenue of GBP 9m and EBITDA of GBP 2.7m in the year ended 28 February 2021, according to the latest filed accounts, which said it expects the EBITDA to double in the next financial year. 

Its platform provides temporary insurance - from one-hour to 28 days - for activities like buying or borrowing a car.

Buyer RVU is a UK-based owner of six consumer financial services brands like Confused.com, Uswitch and Money.co.uk. It is backed by American media company Red Ventures, which in turn counts Silver Lake as a minority investor. 

Last year, Connection Capital earned a 7.6x return through the GBP 110m listing of UK wine retailer Virgin Wines. It also sold portable accommodation hire company Carter to trade buyer Modulaire Group for a 4x return. 

Connection Capital as a private client investment manager allows individuals to commit a minimum of GBP 25k. Its platform pools its client's funds on a deal-by-deal basis and allows them to self-select investments from the GP's portfolio. 

Advisors 

Connection Capital - Houlihan Lokey (M&A); Gateley Legal (legal); KPMG (financial due diligence); Endava (technology due diligence); CiL (commercial due diligence). 

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