BC Partners is set to double its money on Sabre after the insurance company floated on the London Stock Exchange this morning.
The buyout firm will make a 1.2x return from its IPO and a return of approximately 2x overall. Sabre shares were priced at 230 pence each, representing a market capitalisation of £575m (€650.7m).
BC acquired a majority stake in Sabre from its founders in January 2014 for approximately £240m. It invested from its ninth fund, BCEC IX, which closed in 2012 at €6.5bn.
Formed in 1982 and based in Surrey, Sabre sells consumer car insurance through its brands Insure 2 Drive, Go Girl and Drive Smart. It focuses on niche products, such as insurance for young male drivers without a credit history.
During its hold, BC Partners put in place a new management team. It also supported the growth of a direct sales business at Sabre, which primarily sold its products through brokers. This side of business grew to account for 30 per cent of the premiums received in 2016.
Evercore advised BC on the listing process.
While the overall IPO market revived this year following a difficult 2016, private equity-backed listings represent a relatively small proportion of the crop.
Buyout firms have made a significant number of investments in the UK insurance sector in recent years.