BMS Associates announces $50.7 million investment agreement with Capital Z

By: - May 22nd, 2014

BMS Associates (“BMS” or “the Group”) is pleased to announce an agreement with Capital Z Partners Management, LLC (“Capital Z”).

The management of BMS has recently undertaken a review to determine the Group’s strategic approach to both broking and underwriting opportunities across the market. Part of this review has been to investigate potential third party investment to further the Group’s ambitions for future growth.

Under the agreement announced today, which is subject to shareholder approval, Capital Z will invest $50.7m into the Group’s holding company through the acquisition of preference shares and warrants over a minority interest in the Group’s ordinary share capital. The investment will provide the Group with significant capital to support the expansion of the BMS broking business and the underwriting activity of Pioneer.

Upon completion of the transaction, Robert Spass, Managing Partner and co-founder of Capital Z, will join the Group’s board.

Christopher Hopton, Group Chairman, said:

“This investment is a highly significant event for the Group. I am particularly pleased to welcome Bob Spass to our board. His experience in our industry is extraordinary and his participation, together with the involvement of Capital Z, places the Group in an exceptionally strong position to accelerate our growth and command further market share.”

Robert Spass said:

“I have been impressed with the strength and depth of the management team at BMS, their vision for the future and their opportunities to generate significant growth. Capital Z is pleased to have reached this agreement which makes us strategically and economically part of the Group’s future success and I look forward to working with the team.”

Dane Douetil, Group Chief Executive Officer of BMS Associates, said:

“Over the last three years we have invested in 18 new teams across the Group and our continued successful growth is underpinned by Capital Z’s investment, which I consider to be pivotal in our development. We have been absolutely determined to maintain the owner/manager ethos of the Group while finding a partner who can bring in depth knowledge of the industry which will be helpful in our growth. In Capital Z we have found that partner.”

The Group was advised by Canaccord Genuity as financial adviser.

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