Dana Gordon-Davis of Novitas Capital Advisors, Risktrans’ advisors on the transaction, explained, “The challenge was to find a strategic investor able to recognise the value of Risktrans as a platform to consolidate the Truck and Heavy Commercial Vehicle (HCV) sector. The market has standard metrics for valuing insurance brokers, but Risktrans is not a standard insurance broker. It took a special investor with deep market insight and its own growth strategy to appreciate and fully value just what Risktrans brings to the table.”
With a stronger balance sheet, Risktrans will now be able to scale its business, providing insurance solutions to HCV fleets across the country and enabling it to offer better value in terms of services and pricing to its clients.
Gordon-Davis explains, “Risktrans’ ambitions required capital and credibility to be able to make strategic acquisitions and expand its service offering. Fulcrum had a long term commercial relationship with Risktrans that it was looking to deepen.”
Fulcrum’s investment is part of a programme to back a series of winners, such as regional and specialist brokers, with the potential to become ‘super brokers’.