Wragge & Co’s corporate experts have advised CBPE Capital (CBPE) on its investment in Insurance Management company Kane Group. This complex deal included a reorganisation of the Kane Group and its US $27.5 million acquisition of HSBC’s insurance management businesses.
Entirely funded by CBPE, the transaction creates the world’s largest independent insurance manager. Subject to regulatory approvals, the deal will form an expanded group with operations in the UK, North America, Bermuda, Cayman, Guernsey, Malta and the Middle East.
Partner Andy Stylianou and director Gareth Baker led the international transaction for Wragge & Co, supported by solicitor Sophie O’Connor. The team worked closely with CBPE’s Investment Director Andy Nelson and Investment Manager Richard Thompson. Reed Smith acted for Kane Group and the management team of the newly formed company. Bermuda-based Conyers Dill & Pearman advised HSBC.
Andy Stylianou said: “As a valued adviser to CBPE, our in-depth understanding of its investment and acquisition strategy, coupled with our vast experience of mid-market private equity transactions, ensured we achieved a successful outcome for CBPE.”
Andy Nelson added: “This complex transaction creates an independent insurance manager of scale and international reach, and was only possible due to a fantastic team effort from all of our advisers.”
CBPE is a leading player in mid-market UK private equity, managing funds totalling €1 billion on behalf of institutional investors from the UK, Europe, Middle East and US. Established in 1984, it invests in transactions with a value of up to £150 million.
Wragge & Co has advised CBPE for more than a decade, with highlights including acting on its investment to part-fund AMF Bowling’s acquisition of rival Hollywood Bowl. Previous instructions also include CBPE’s initial purchase of Away Resorts for an undisclosed sum, and advising on its subsequent bolt-on acquisitions to the leisure park operator.
HSBC Insurance Management provides management, administration and structuring support services for a range for a range of businesses including insurance linked securities and insurance companies. Kane was established in 2008 when management completed a MBO of the London operations of the Heritage Group, a Guernsey-based insurance manager.
Wragge & Co’s 70-lawyer Corporate group specialises in M&A, private equity, IPOs, joint ventures, public takeovers, share schemes, complex corporate structuring, funds and tax. Highlights of its M&A work in the last six months include advising KBC group on the sale of its asset-based lending division, KBC Business Capital, to NYSE-listed PNC Financial Services Group. Wragge & Co also advised ISIS Equity Partners on the sale of Credit Solutions to arvato UK & Ireland.
