BEECH TREE PRIVATE EQUITY ANNOUNCE THEIR FIRST DEAL
5 May 2015
Beech Tree Private Equity (“BTPE”) today announce RS Fleet as the first investment from their maiden fund.
Following on from the announcement of the launch of the first fund, Beech Tree Private Equity Fund 1, BTPE are investing from this fund in RS Fleet Limited, the UK’s leading installer of telematics devices into vehicles on behalf of insurance companies. Telematics devices are increasingly being used by insurance companies to provide real-time data on driver behaviour that enables insurers to offer consumers lower priced policies if they drive responsibly. Initially targeted at the Young Driver market, 17-20 year old drivers who have just passed their driving test, telematics devices are now being fitted in more and more policies which enable a wide range of consumers to benefit from lower premiums and reward good driving behaviour. The use of telematics devices has improved driver behaviour with insurers who have actively adopted the technology reporting improved loss ratios, facilitating lower premiums for their customers.
Commenting on the deal, Paul Franks, Managing Partner of Beech Tree Private Equity said “We are incredibly excited to be investing in RS Fleet. Our business model is to seek out fast-growth sub-sectors in the UK and then find the best businesses in these sectors to take advantage of the market dynamics. The market for telematics-based solutions is accelerating rapidly and we believe we have found the UK’s leading service provider to the insurance industry in the UK. Our investment will be used to expand the management team, to enter new markets in the UK, including the fleet market, where we see huge potential for telematics-enabled solutions and to support RS Fleet’s existing customers with their growth plans, both in the UK and overseas. This is one of those rapidly expanding markets where having a well-capitalised business can enable RS Fleet to capture the full potential of the market growth”.
Lea Hodson, Managing Director of RS Fleet commented on the transaction. “I am delighted to have Beech Tree Private Equity on board as a partner to assist in the growth of RS Fleet. RS Fleet is at the centre of a growing market that provides real benefits for insurance companies and their customers from the use of telematics technology. Bringing a private equity investor on board that is experienced, who understands the business and fits culturally is a big step for me and the company. Being Beech Tree Private Equity’s first investment is a real privilege and I genuinely look forward to building RS Fleet’s capability and customer proposition with Beech Tree”.
About Beech Tree Private Equity:
Beech Tree Private Equity is a new private equity firm providing capital and expertise to fast growing businesses across the UK. BTPE invest £10-30 million into high growth companies typically valued at between £10 and 75 million. The business was founded by two experienced private equity investors, Andy Marsh and Paul Franks, who previously ran the regional private equity business of Gresham Private Equity. Beech Tree Private Equity invests in businesses operating in high growth markets or with disruptive business models which, with additional capital and expertise, can take advantage of the dynamics of an attractive business model and expanding market. More information can be found at www.beechtreepe.com
About RS Fleet:
Based in Coleshill, West Midlands, RS Fleet is the leading installer of telematics devices in-vehicle on behalf of insurance companies. The business has invested heavily to provide a highly effective and technology-enabled efficient installation service for insurance companies. RS Fleet installs over 200,000 telematics devices across the UK through its fleet of over 100 field-based auto engineers with over 1,000 appointments co-ordinated per day. The business is also expanding into other telematicsenabled markets such as the fleet market to provide a similar cost-effective installation service for blue-chip organisations.
Advisers on the transaction:
Beech Tree Private Equity were advised by the following parties:
Legal: Eversheds (Antony Walsh, Nick Turner)
Financial: KPMG (Glynn Bellamy, Mathew Vernon, Richard Dwight)
Tax: KPMG (Steve Heath, Anna Roberts)
IT: Diligent Consultancy (Dave Rogers)
The company was advised by Higgs & Sons and Spencer Gardner Dickins.
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