Clifford Chance

Clifford Chance advises Pemba on acquisition of Premium Funding and Principal Finance

Leading international law firm Clifford Chance has advised Australian private equity firm Pemba Capital Partners (Pemba) on the simultaneous acquisition of two independent premium funding businesses, Premium Funding and Principal Finance, to create Australia's largest independent player in the insurance premium funding sector.

The acquisitions, which completed on 29 January 2021, are backed by a new AU$250 million debt facility from ANZ Banking Group.

The combined businesses will have a combined AU$600 million in annual turnover growing at about 15 percent a year.

Partner Mark Currell led a cross-practice team with support from senior associate Marcus Berghouse and associate Alice Bradshaw. The financing aspects of the transaction were led by partner Mark Gillgren and Australia Managing Partner Richard Gordon, supported by senior associates Nick Henneberry and Sherry Khalili, and associate Madeleine Burrill.

Pemba specialises in buy and build partnerships with owners and managers of private businesses.

Mark offered, "We have worked closely with the Pemba team for a number of months to acquire these premium funding groups and bring these deals to completion. We are delighted to have partnered with Pemba on the establishment of their promising buy and build partnership in Australia's insurance premium funding market."

Marcus adds, "We congratulate Pemba on the completion of the Premium Funding and Principal Finance acquisitions. It is an exciting step for Pemba Capital as it steps into the insurance premium funding sector. We are pleased to be involved in yet another successful private equity acquisition."