Tempcover completes £13.3m MBO

Tempcover has completed a £13.3m management buy-out (MBO) backed by £7.5m from Connection Capital alongside a £5.75m debt package from Santander UK’s Growth Capital team.

The business specialises in providing short term policies of 1-28 days.

The firm was established in 2006 and now has an estimated 60% market share in its niche. It wrote over 360,000 policies last year.

Tempcover highlighted a range of factors contributing to its growth including the rise of the gig economy and the evolution of more flexible sharing models.

As part of the deal Connection Capital has added Peter Barrett as non executive chairman and Christian Young as a non executive director to Tempcover’s board.

Evolution
Alan Inskip, CEO of Tempcover said: “Tempcover has been trail-blazing the specialist temporary insurance market for over a decade, so the MBO is a real milestone in our evolution.

“We have exciting plans to grow the business significantly, which will see us develop our capability into existing and new areas of temporary insurance.”

He concluded: “Connection Capital’s investment and expertise will undoubtedly be invaluable as we strengthen our market position and ramp up our offering.”

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