B.P. Marsh & Partners, a specialist private equity investor in early-stage financial services firms, has made a $12.6m investment in XPT Group, a leading US-based insurance distribution platform.
The funding is a mix of equity purchase and a new loan facility. Alongside this, XPT has expanded its banking facilities, now benefiting from a $122m total loan facility provided by Apogem Capital, including $55m in additional loans, according to InsurTech Insights.
Chicago-based First Eagle Bank has syndicated a portion of this extended funding.
The new funding will support XPT’s strategic initiatives, including organic growth, talent acquisition, and further mergers and acquisitions. The company aims to achieve nearly $1bn in Gross Written Premiums (GWP) in 2024, a substantial rise from $675m in 2023.
B.P. Marsh has acquired additional equity from three senior XPT executives and provided a $6.3m loan with an interest rate of SOFR plus 4.7%, subject to a minimum rate of 10%.
This latest investment increases B.P. Marsh’s fully diluted stake in XPT to 29.63%, further reinforcing its commitment to XPT’s growth and market leadership.
Dan Topping, chief investment officer at B.P. Marsh, said, “We are delighted to support XPT Group with this additional funding. This investment reflects our continued confidence in XPT’s robust business model and impressive growth trajectory. Since our initial involvement in 2017, XPT has demonstrated exceptional performance, driven by strategic acquisitions, talent hires, and solid organic growth.
“By increasing our equity stake and providing further loan support, we are reinforcing our commitment to XPT’s ongoing expansion. We look forward to seeing this new capital boost XPT’s growth strategy as they continue to cement their position in the market.
“We are also pleased to welcome First Eagle Bank as a financial institution providing further funding support to XPT, allowing it to continue its growth trajectory.”
Thomas Ruggieri, XPT’s CEO, added, “We remain appreciative of the continued support from B.P. Marsh. This latest round of funding further solidifies our partnership and provides XPT with the resources to accelerate our strategic growth initiatives.
“Since our founding in 2017, we have focused on expanding our footprint through both acquisitions and organic growth, allowing us to reach nearly $1bn in Gross Written Premium this year.
“The new funding from B.P. Marsh, coupled with the increased banking facility from Apogem and now First Eagle Bank, empowers us to pursue new opportunities, strengthen our team, and continue to deliver exceptional value to our clients across the United States.”
In the six months to 31 July 2024, B.P. Marsh reported a 20.8% rise in the valuation of its XPT stake, delivering an internal rate of return of 31%. This latest investment highlights the firm’s strategy to support high-growth businesses in its portfolio.
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