Investment firms British Columbia Investment Management (BCI) and Preservation Capital Partners are weighing a sale of British specialist re/insurance broker BMS Group, reported Bloomberg citing people privy to the development.
A possible deal would value the business at over £600m ($720m), according to the people.
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Preservation Capital and BCI initially invested in London-based BMS in 2019, valuing the broker at £500m.
BCI is a Canadian institutional investor, while Preservation Capital usually makes equity investments of £50-150m.
The investor duo will now work alongside Evercore to assess strategic options for the broker.
Banks as well as private debt providers are keen in funding the transaction, stated the news agency.
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By GlobalDataHowever, the talks are still underway, and the possibility of a deal materialising is uncertain. Neither BMS nor Evercore confirmed the development.
BMS offers specialist insurance, reinsurance, and capital markets advisory services. Set up in 1980, it has operations across Latin America, Australia, Europe, Asia, Canada, and the US.
It reportedly posts annual earnings of nearly £100m.
In July 2022, the company was in the news for its purchase of specialist reinsurance broker Calomex, which marked its foray into the Mexican treaty reinsurance sector.
This followed its acquisition of specialist reinsurance broker PWC Mexico, which involved the transfer of the latter’s employees and infrastructure into BMS Re Latin America & Caribbean (LAC).
Earlier this year, the broker launched the BMS Risk Solutions unit in New Zealand, which will operate through offices in Dunedin, Christchurch, as well as Auckland.
