News & Analysis

TPG, AlpInvest, Pantheon back IK’s insurance single-asset deal

The transaction comes off the back of at least three other insurance-focused continuation fund deals in Europe over the past half-year.

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A trio of buyers have backed a continuation fund for Dutch insurance asset Yellow Hive as  GP-led activity in the insurance sector increases.

AlpInvest Partners, Pantheon and TPG co-led the deal to move the company, which was originally acquired as You Sure, out of IK Partners’ IK Small Cap II fund and into a separate vehicle, according to four sources familiar with the matter.

The transaction is worth almost €500 million, according to the sources.

TPG negotiated the key terms of the transaction, according to a source familiar with the deal. According to a separate source, AlpInvest and TPG jointly set the key terms and structuring for the transaction.

Evercore advised on the transaction, Secondaries Investor understands.

IK acquired a majority stake in You Sure in 2020, according to the firm’s website. At the time it was the 11th investment from IK’s SC II fund. You Sure rebranded to Yellow Hive the following year.

SC II closed on €550 million in 2018 with backing from the European Investment Fund, New York State Teachers’ Retirement System and Varma Mutual Pension Insurance Company, according to data from affiliate title Private Equity International.

The deal is understood to be closing this week.

The transaction comes after at least three other insurance-focused single-asset deals in Europe over the last half year. In September, the UK’s Pollen Street Capital was close to closing a complex insurance-focused continuation fund deal involving Markerstudy, an insurance group, and regulated industries software provider Aryza. AlpInvest also backed that deal.

In October, Secondaries Investor reported that London-headquartered AnaCap was near to finalising a continuation fund deal involving assets it agreed to partially exit via M&A processes this year, including commercial lines insurance broker MRH Trowe.

In January, Ares Management took the lead on a single-asset continuation fund transaction involving specialty insurance and reinsurance broker BMS Group, managed by Preservation Capital.

IK Partners, TPG, AlpInvest and Pantheon declined to comment. Evercore did not return a request for comment.