UK buyout firm Sovereign Capital Partners has sold insurance claims provider Claims Management Group Limited for £32 million (€47 million, $63 million) to the Capita Group, part of the FTSE 100 index of the biggest companies in the UK.
CMGL processes various insurance claim processing services for FTSE-quoted companies, general insurers, Lloyd’s underwriters and London market companies.
Sovereign Capital only acquired CMGL in August 2005 as a carve-out from Zurich Financial Services, but has since been able to triple the value of the company in just 19 months.
The sale will generate an internal rate of return for the firm of 260 percent. It is the first exit from Sovereign’s second fund, which raised £275 million in 2005.
Sovereign Capital, which specialises in buy-and-build investments, has £450 million under management and backs lower mid-market UK companies valued between £5 and £20 million.