BP Marsh & Partners PLC on Tuesday announced the sale of its stake in Lilley Plummer Holdings Ltd, the owner of specialist Lloyd’s broker Lilley Plummer Risks Ltd.

The London-based venture capital provider sold its 28% stake in the London-based Lloyd’s broker to Clear London Markets Ltd for a total cash consideration of £21.7 million.

BP Marsh & Partners invested in the start-up business in October 2019, when it acquired a 30% stake for a total of £1 million. Lilley Plummer Risks achieved brokerage of £1.8 million in its first full year that ended December 31, 2020, and earnings before interest, tax, depreciation and amortisation of £400,000.

Now, for the year due to end December 31, 2024, the business is forecast to achieve brokerage of £12.7 million and adjusted Ebitda of £6.1 million. It contributed £400,000 in income for BP Marsh & Partners during the financial year that ended January 31, 2024.

Proceeds from the sale will be used to make long-term investments across the company’s existing portfolio. In addition to this, BP Marsh & Partners intends to distribute a further £7.0 million in dividends over the next three years, effective from the year due to end January 31, 2026.

Chief Investment Officer Dan Topping said: ‘The group’s founding investment in Lilley Plummer Risks, and its eventual sale, is testament to our approach in seeking partnerships with skilled management teams to create and ultimately realise value for our shareholders. We’re delighted to have been part of the growth of Lilley Plummer Risks.’

Shares in BP Marsh & Partners were up 0.9% at 590.00 pence each in London on Tuesday morning.

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