Dunedin says it will use its investment in Gissings Advisory Services as a platform for regional growth.
The private equity company backed an £18m management buyout at GAS this month, its sixth acquisition in the financial services sector. GAS provides corporate advice on flexible benefits, private medical insurance, life insurance, permanent health insurance and occupational health.
Dunedin has backed MBOs at other financial services firms, including Practice Plan, Home & Legacy, Davenham and Zenith.
GAS employs 57 people and is based at Finsbury Circus in London. It claims to be the fifthbiggest group risk distributor in the UK.
Dunedin says it targeted GAS as a strong player in the flexible benefits market, which it sees as an area set to grow by 16 per cent annually for the next five years. Dunedin director Giles Derry is set to take a seat on the board at GAS.
Derry says: “GAS is one of a small number of operators in the employee benefits consulting market to develop a more sophisticated business model. This comprises the provision of a range of consulting and other services alongside product broking. We view GAS as a great platform to build on, with the potential for geographic growth.”
GAS managing director Andrew Kilbey says: “Dunedin stood out as a strong financial partner. The team has a good track record in and considerable understanding of the financial services industry which, coupled with its underwriting of the debt package in a difficult credit market, enhanced deliverability for all parties.”
Dunedin says the distribution market is still fragmented, with over 100 corporate intermediaries in private medical insurance alone. However, it says consolidation is expected to realise cost synergies and it has not ruled out further acquisitions in the area.