Magenta sells minority stake in iPrism to Bowmark

The GP initially invested in iPrism in November 2010 when, according to unquote" data, it led a £7.5m round to acquire an undisclosed minority stake in the company.

The value of the exit is undisclosed, though Magenta stated it provided strong returns. The fund has so far generated returns of more than £90m from three exits, having invested £44m across eight companies.

Chase Emson, a partner at Magenta told unquote" that iPrism's exit was a "very positive story" for the GP. The decision and timing was driven by the company's growth, which rendered it large enough for investment from a mid-market fund.

Emson added: "The company considered a number of different exit scenarios for Magenta before deciding on a secondary buyout due to management's appetite to continue with the business during the next stage of its growth." 

Magenta was launched in January 2008 and made its first exit three years later when it sold media design and production agency Tag Worldwide to Williams Lea in a trade sale. In May 2013, it sold UK-based Pure Gym to CCMP Capital Advisers in another SBO, generating an IRR of 76%.

According to unquote" data, the fund's most recent deal was in May 2011 when it secured a minority stake in Jojo Maman Bebé, a UK-based multi-channel retailer of baby-related products.

Bowmark's acquisition of iPrism comes a year after it backed the £30m management buyout of UK-based restaurants operator Drake & Morgan.

Debt
RBS Financial Sponsors provided senior debt and working capital facilities. 

Company
London-based iPrism was founded in 2006 by Gary Burke and provides online insurance underwriting services for SMEs.

People
Chase Emson and Tom Matthews are partners at Magenta.

Advisers
Vendor – Shoesmiths (Legal).
Company – Arram Berlyn Gardner, Eleanor Wilkinson (M&A).
Management – Macfarlanes (Legal).

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• Topics
• Exits
• Financials
• UK / Ireland
• Buyouts
• Bowmark Capital LLP
• Secondary buyout