Central and Eastern Europe-focused private debt group Syntaxis Capital has provided a mezzanine financing package to Polish automotive insurance group BIK Brokers.
The firm provided a mix of mezzanine and direct equity financing, ending up as the sole lender post-close, according to Przemek Szczepansk, a partner at the firm. Syntaxis did not reveal the size of the deal.
The deal is essentially a partial recapitalisation of the business, with additional expansion capital made available for new initiatives that will include both organic growth and bolt-on acquisitions, he added.
Syntaxis has assets under management of about €250 million, spread across two funds. Its LPs include the European Bank for Reconstruction and Development and the European Investment Fund.
The Gdasnk, Poland-based broker is the country’s leading wholesale insurance broken, Syntaxis said in a statement confirming the deal, acting as an intermediary between blue-chip clients such as car fleet management groups and leasing companies, and insurance providers.
“Having screened the insurance intermediation market we identified BIK as an attractive target – an innovation leader providing world class services to a blue chip customer base,”
Szczepanski said in the statement. “We believe the company has strong organic growth potential and is a great platform for a buy-and-build strategy. We are also impressed by the quality of the management team, which has devised a comprehensive long-term growth plan.”
Roman Czarnowski, chief executive of BIK, added: “We believe now is the perfect timing for investment as the market is ripe for consolidation.”