LDC, the UK’s leading mid-market private equity investor, has invested £28m for a minority shareholding in one of the UK’s leading vehicle insurance specialists Right Choice Insurance Brokers (‘RCIB’).
RCIB is a motor insurance broker with great insurer relationships, helping to deliver competitive premiums to those customers who typically find it more difficult to buy insurance online. The business uses its unique proprietary software alongside human interaction making it a truly value additive insurance broker.
RCIB was launched by CEO Mike Joseph in 2008 and has grown year on year since, reaching turnover of £26m in its latest financial year and employing more than 350 people. In 2016, RCIB acquired three premium motor breakdown insurance brands from ERS to strengthen the breakdown cover arm of the business.
With LDC on-board, RCIB now plans to invest in further developing its proprietary software and technology platform to accelerate growth and capitalise on its strong performances to date.
The transaction was led by Yann Souillard, Steve Aston and Aylesh Patel at LDC, with Yann and Steve both joining the board as non-executive directors alongside non-executive chairman Ian Owen. Having sat on the board of industry giants including Zurich and Liverpool Victoria and personal lines specialists such as A-Plan, Owen brings a wealth of industry experience.
Mike Joseph, chief executive of Right Choice Insurance Brokers, said: “We have grown organically from day one, and over the last 10 years have achieved significant scale as a result of our unique business model and technology platform.
“We’re now at the stage where investment is paramount to enable us to push on to the next phase of our growth plans. Having held a longstanding relationship with LDC, partnering with them was a natural fit and we are excited to move forward with our shared ambition.”
Yann Souillard, head of LDC in London and the South, said: “Mike is a great example of the type of ambitious entrepreneur with a proven track-record for growth that we love to back. Having developed Right Choice from just a concept, Mike and his team have created a major disruptor in the insurance space and we look forward to working together to execute a growth plan, which will strengthen the business’ position as a market leader in its field.”
Debt facilities were provided by Ares. The management team was advised by KBW-Stifel and LDC was advised by Addleshaw Goddard (legal), KPMG (Financial DD and Debt Advisory) and OC&C (Commercial DD).