BC Partners is preparing to sell a minority stake in Davies Group, the UK-based insurance services provider, after negotiations for a full sale fell through due to a mismatch in valuation expectations, according to Bloomberg.

The firm had targeted a valuation of £4bn ($5.3bn) for Davies, but Nordic Capital, the final bidder in the process, walked away, citing the price as too high. As a result, BC Partners has shifted its strategy toward a partial exit while maintaining confidence in Davies’ growth outlook.

BC Partners acquired Davies in 2021 in a deal valuing the business at £1.2bn, including debt. Since then, Davies has scaled through multiple bolt-on acquisitions and now operates in over 20 jurisdictions, including the United States. The firm offers end-to-end claims management and administrative services to insurers, reinsurers, and brokers, leveraging advanced technologies such as drones to support its operations.

The decision to pursue a minority stake sale follows a record year for BC Partners, which returned €12bn ($13.1bn) to investors in 2024 – its highest level of distributions to date. Notable exits included the sale of its stake in Dutch pharmaceutical firm Synthon to Goldman Sachs Asset Management and the divestment of its position in Canadian security provider GardaWorld. The firm also successfully listed Springer Nature AG in Germany last year.

With around €40bn ($45bn) in AUM, BC Partners is now planning to raise between €5bn and €6bn for its next flagship fund. The firm aims to leverage recent liquidity events to attract investor support in a competitive fundraising environment.

Source: Bloomberg

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