The funding is structured as a mix of equity purchase and a new loan facility.

This investment comes alongside an expansion of XPT’s banking facilities. Currently backed by a $67 million facility from Apogem Capital LLC, XPT will now benefit from an additional $55 million in loans provided by Apogem, bringing the total facility to $122 million. A portion of this extended facility is syndicated by First Eagle Bank, a Chicago-based financial institution managing approximately $600 million in assets.

Investment Details

B.P. Marsh’s funding consists of:

• Equity Purchase: Acquiring shares from three senior XPT executives.
• Loan Facility: A $6.3 million loan with an interest rate of SOFR plus 4.7%, subject to a minimum of 10%.

Following this investment, B.P. Marsh will hold a 29.63% fully diluted stake in XPT, reflecting the company’s continued confidence in XPT’s growth trajectory. The financing has been drawn from B.P. Marsh’s cash reserves.

Growth Targets and Strategy

The combined funding from B.P. Marsh and Apogem will support XPT’s strategic goals, including organic growth, talent acquisition, and mergers and acquisitions. The funds will also bolster XPT’s Platinum Specialty Underwriters program, focusing on expanding its Property and Professional Liability product lines.

XPT is on track to achieve Gross Written Premiums (GWP) of nearly $1 billion in 2024, a significant increase from $675 million in 2023.

Strong Financial Performance

B.P. Marsh reported a 20.8% rise in the valuation of its XPT stake in the six months to July 31, 2024, delivering an internal rate of return of 31%. The additional investment underlines the firm’s commitment to supporting high-potential companies within its portfolio.

This strategic partnership continues to strengthen XPT’s position as a leader in the insurance distribution market while aligning with B.P. Marsh’s investment objectives.

Dan Topping, Chief Investment Officer of the Company, commented: “We are delighted to support XPT Group with this additional funding. This investment reflects our continued confidence in XPT’s robust business model and impressive growth trajectory. Since our initial involvement in 2017, XPT has demonstrated exceptional performance, driven by strategic acquisitions, talent hires, and solid organic growth.

“By increasing our equity stake and providing further loan support, we are reinforcing our commitment to XPT’s ongoing expansion. We look forward to seeing this new capital boost XPT’s growth strategy as they continue to cement their position in the market.

“We are also pleased to welcome First Eagle Bank as a financial institution providing further funding support to XPT allowing it to continue its growth trajectory.”

XPT’s Chief Executive Officer, Thomas Ruggieri stated: “We remain appreciative of the continued support from B.P. Marsh. This latest round of funding further solidifies our partnership and provides XPT with the resources to accelerate our strategic growth initiatives.

“Since our founding in 2017, we have focused on expanding our footprint through both acquisitions and organic growth, allowing us to reach nearly $1 billion in Gross Written Premium this year.

“The new funding from B.P. Marsh, coupled with the increased banking facility from Apogem and now First Eagle Bank, empowers us to pursue new opportunities, strengthen our team, and continue to deliver exceptional value to our clients across the United States.”