CBPE completes Direct Commercial deal

Private equity firm CBPE Capital has completed its investment into Direct Commercial Limited and Carraig Insurance, which will sit together under the brand Direct Commercial Group.

DCL is a commercial motor MGA, which is based in Chelmsford but also has an office in London. The MGA provides underwriting services, offers policy administration and in-house claims handling.

The company has 145 staff, and, after the investment, Phil Cunningham, founder and CEO of DCG, remains the majority shareholder.

Development
Cunningham commented: “I founded the business almost 20 years ago and we have seen strong growth and consistent profits for our capacity providers, whilst at the same time being at the forefront of product development and service levels for our policyholders and broker partners.

“In order to continue the businesses development, it was the right time to bring a supportive private equity partner into the business as shareholders. CBPE are experienced investors, with a strong financial services track record, and I look forward to our partnership over the next few years.”

Growth
The group also includes Carraig, an insurance carrier based in Gibraltar, which provides insurance capacity to DCL alongside Munich Re Group.

According to CBPE, the investment in DCG continues its ambition of investing to support the growth and development of businesses in the financial services sector.

Mathew Hutchinson and Richard Thompson, partners at CBPE, said: “We are very excited about our investment in DCG. Through its dedicated focus on commercial motor over a sustained period Phil and the management team have built a very strong business.

“We look forward to supporting the team and taking the business through the next stage of its growth.”

The private equity firm previously invested in Xafinity, a corporate pensions consultancy, and JTC, a global administration services provider, and Compre Group, a run-off insurance consolidator.

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