Magenta Partners sells its stake in iPrism to Bowmark Capital

– Second exit for Magenta in twelve months –

Funds advised by Magenta Partners (Magenta), the entrepreneurial growth investor, has announced that it has sold its stake in iprism Underwriting Agency Limited (iprism), to Bowmark Capital.

iprism is an insurance intermediary that sells policies to brokers and direct customers on behalf of groups such as AXA, Aviva and LV.  Its online platform generates quotes and policy documentation in real time, maximising the speed and efficiency of price testing and purchase. Magenta acquired a minority stake in iprism in November 2010.

Chase Emson, partner of Magenta Partners, said: “iprism is a great example of a business that has shown consistently strong growth despite challenging economic conditions, and this is largely down to its innovative approach and talented management team.  It recognised how an online capability could revolutionalise the process of buying SME insurance.

“As a minority investor, we have worked alongside the business from the point that it was just starting to break even to now. It has shown a highly impressive rate of growth and has netted a significant return on our investment. We wish the company great success during its next stage of development.”

Magenta launched in January 2008; since then it has advised on investments into eight UK small and medium sized businesses, including childrenswear retailer JoJo Maman Bebe; and has exited three investments, which include Pure Gym, sold to CCMP Capital Advisors in May 2013 generating an IRR of 76%, and independent media design and production agency Tag Worldwide, which sold to Williams Lea in 2011, generating an IRR of 42%. Across its eight portfolio businesses, Magenta has advised on investments totaling £44 million and returned just over £90 million from its first three exits.

Tom Matthews, partner of Magenta comments: “Our investment performance continues to demonstrate that supportive and knowledgeable capital, when partnered with entrepreneurial and talented management teams in growth businesses, can generate top tier returns for investors without the need for excessive leverage. It is an exciting segment of the market in which to operate given the current environment.”


Magenta Partners leads a £7.5m investment in iPrism

Funds advised by Magenta Partners have completed an investment of £7.5m for a minority stake in iprism Underwriting Agency Ltd (‘iprism’).

iprism has developed an online platform that generates truly comparative quotes and full policy documentation in real-time. Brokers and customers can select their policy and buy it in minutes without referral back to the underlying insurers – revolutionising the speed and efficiency of both price testing and purchasing.

iprism’s secure and sophisticated platform has a panel of 15 Insurers offering comparative quotes on generic policy wordings covering 14 SME products plus Mid and High Net Worth. Over 1,000 brokers have signed up to iprism agency agreements, eager to benefit from the efficiency and high service levels iprism offers including their in-house underwriting capability to amend quoted terms in real time.

Gary Burke, founder of iprism commented:

“Having become profitable earlier in the year it was time to involve external capital in the next stage of our development. Magenta understood our business model and could see the enormous potential in the coming years”.

Magenta Partners are a highly entrepreneurial team targeting investment opportunities in growth businesses, and have specific experience in UK online insurance businesses. Magenta Partners’ principal founder and investor are the Singh Family Trusts – Tom Singh, founder of New Look, is one of the UK’s leading retail entrepreneurs.

Chase Emson of Magenta Partners added:

“iprism has developed a strong online platform capable of delivering a range of SME and HNW insurance products to brokers and individuals. We believe the company is ideally placed to benefit from the increasing need for independence, efficiency and competitive pricing in these large sub-sectors of the insurance market. We are excited to be involved in an investment alongside Gary Burke and look forward to working with the management team during the next stage of iprism’s growth.”