Ex-Gresham men’s new venture completes first deal
A COLESHILL company which installs in-cab tracking devices to vehicles is targeting growth after a new funding deal.
RS Fleet is a leading installer of in-vehicle telematics devices on behalf of insurance companies.
The business installs more than 200,000 telematics devices across the UK and is also expanding into other telematics-enabled markets such as the fleet market to provide a similar installation service for blue-chip organisations.
It has now secured funding support from private equity firm Beech Tree Private Equity through its Fund 1. The terms of the deal have not been disclosed.
BTPE has been set up by two former executives at private equity house Gresham. Paul Franks ran Gresham’s Birmingham office and his colleague in the venture is Andy Marsh, who runs the operation in Manchester.
Commenting on the deal, Paul Franks, managing partner of BTPE said: “We are incredibly excited to be investing in RS Fleet. Our business model is to seek out fast-growth sub-sectors in the UK and then find the best businesses in these sectors to take advantage of the market dynamics.
“The market for telematics-based solutions is accelerating rapidly and we believe we have found the UK’s leading service provider to the insurance industry in the UK. Our investment will be used to expand the management team, to enter new markets in the UK, including the fleet market, where we see huge potential for telematics-enabled solutions and to support RS Fleet’s existing customers with their growth plans, both in the UK and overseas.”
Lea Hodson, managing director of RS Fleet said: “I am delighted to have Beech Tree Private Equity on board as a partner to assist in the growth of RS Fleet. RS Fleet is at the centre of a growing market that provides real benefits for insurance companies and their customers from the use of telematics technology.
“Bringing a private equity investor on board that is experienced, who understands the business and fits culturally is a big step for me and the company.”
BTPE was advised on the deal by (legal) Eversheds (Antony Walsh, Nick Turner); (financial) KPMG (Glynn Bellamy, Mathew Vernon, Richard Dwight), (tax) KPMG (Steve Heath, Anna Roberts) and (IT) Diligent Consultancy (Dave Rogers).
RS Fleet was advised by Higgs & Sons and Spencer Gardner Dickins.
Telematics devices are increasingly being used by insurance companies to provide real-time data on driver behaviour that enables insurers to offer consumers lower priced policies if they drive responsibly. Initially targeted at the Young Driver market, 17-20 year old drivers who have just passed their driving test, telematics devices are now being fitted in more and more policies which enable a wide range of consumers to benefit from lower premiums and reward good driving behaviour.
The use of telematics devices has improved driver behaviour with insurers who have actively adopted the technology reporting improved loss ratios, facilitating lower premiums for their customers.
