David Margrett launches London Market consolidator

David Margrett has launched a new London Market consolidator aimed at brokers and managing general agents trading in the global, specialty insurance and non-treaty reinsurance markets.

Global Risk Partners (GRP) has been established by Margrett, who was previously president of Willis Global and chairman and CEO of Willis Limited. Margrett, chief executive, is joined by Stephen Ross, formerly a partner with Deloitte, who is a founder investor and becomes chief operating officer.  GRP is backed by private equity firm, Penta Capital and Peter Cullum, non-executive deputy chairman of Towergate, is a co-investor. The initial investment fund is £55 million with the capacity to invest in excess of £100 million.

GRP will focus on acquisition of brokers, MGAs, portfolios and teams which have niche, non-commoditised, specialty business and strong profitability.

GRP has already bought Towergate Underwriting Commercial Property, which will trade under the new name of European Property Underwriting (EPU). EPU controls significant premium and manages the insurance portfolios of some of Europe's largest property owners.

The acquisition of a second specialist MGA is expected to be completed very shortly.

“There is a significant opportunity in the specialty insurance market for brokers, MGAs and teams who want to benefit from equity share ownership,” said Margrett. “Our proposition is attractive for owner-driver management teams and for businesses where existing shareholders wish to exit, either partially or fully, providing the opportunity for the ongoing management teams to develop their business further. We have a very strong acquisition pipeline and are delighted to have Penta Capital as our partner, who have an enviable track record. “

Charles Schrager from Penta Capital added: "Global Risk Partners is an ideal investment for Penta, who have longstanding expertise in the insurance market and this type of buy-and-build investment, where we are able to start from a blank piece of paper and create a business of scale and focus. GRP’s unique investment approach allows existing shareholders to retain a share of equity in their business and continue their focus on business growth or to exit the business completely. We look forward to working with the team to build a leading player in this attractive segment of the insurance market.”