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Sovereign exits insurance brokerage Arachas on 5.5x return

January 31, 2020

Private equity firm Sovereign Capital Partners has sold its investment in Arachas Corporate Brokers, generating a 5.5x money return.

Arachas is a commercial insurance brokerage in Ireland. It has been sold to funds controlled and managed by Madison Dearborn Partners and HPS Investment Partners.

Sovereign originally backed the management buyout of Arachas in 2017 and since then the business has made four acquisitions: Capital Cover Group, Kidd Insurances, Covercentre and Murray & Spelman.

It now employs over 240 staff across its offices in Dublin, Cork, Kildare and Waterford.

Alex Hay, Partner at Sovereign, said: “We are delighted to have partnered this highly respected management team to support the transformational growth of Arachas in the Irish market. The business has achieved exceptional organic and strategic growth in the last three years whilst remaining focused on delivering a consistent and first class customer experience.”

Conor Brennan, CEO of Arachas, added: “Sovereign has been a highly supportive investor providing both financial and strategic capability. Together we made a series of high quality acquisitions and delivered strong organic growth supported by significant investment into the company’s IT systems and data analytics capability.”

 

 

 

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