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MCI.EuroVentures (Fund, MCI.EV) acquires Hungarian insurtech market leader Netrisk.hu (The Company, Netrisk). The value of the transaction co-financed by Mezzanine Management and Bank Gospodarstwa Krajowego amounted to EUR 56.5 million.

29.12.2017 Download PDF
  • The Seller, Enterprise Investors fund, has been involved in Netrisk since 2010.
  • After the transaction, MCI Group assets under management allocated in the fintech/insurtech sector make it one of the three largest areas of Funds’ exposure, alongside Internet infrastructure and e-commerce.

MCI Group is strengthening its position as a leading technology Fund in the region. Through an investment made by the buyout Fund MCI.EuroVentures, MCI Group enters Hungary, expanding the scope of investment activities.

Netrisk is a leading Hungarian online insurance broker. Hungarian non-life insurance market is valued at ~EUR 1.5 billion, of which 20% is generated online. Netrisk is the market leader, responsible for about 30% of online insurance.

Netrisk is a leading online insurance broker, operating in the one-stop-shop model, with potential for further dynamic development. The key growth drivers consist of favorable market conditions, continued shift of consumer shopping habits from offline to online, as well as the company’s strong position and expertise in the insurance sector. Our Fund, based on years of experience in digital companies development, will actively support Netrisk’s value creation. The company is already a recognizable brand in Hungary with a loyal customer base – said Krzysztof Konopiński, Partner at MCI Capital, responsible for leading the transaction.

As stated by Łukasz Wierdak, who is responsible for Fintech investments at MCI: Netrisk is not only the Hungarian market leader in the dynamically growing online segment of insurance products distribution (including MTPL, CASCO, home insurance, as well as travel insurance). The company has also built a marketplace for banking products and telecom offerings and we also see a significant upside potential in further development these segments. Moreover, Hungary is one of the most developed markets when it comes to online distribution of insurance products in CEE, which makes a solid basis for building a regional champion in the segment.

Mezzanine Management supports the investment strategy in the space of digital economy. Acquisition of Netrisk, an undisputed leader in its segment, makes a perfect fit. Strong market position allows the company to generate stable and increasing cash flows, which increase the investment security and represent a strong base for further growth­ – added Przemysław Głębocki, Managing Partner of Mezzanine Management.

Deloitte has advised MCI Group on the transaction.

Netrisk is the 7th company from the fintech/insurtech segment in MCI’s portfolio and the 2nd online broker of insurance products. In 2015, through an investment of Internet Ventures fund (MCI VC arm), MCI became a shareholder of a Polish company – mfind. Other insurtech/fintech companies in the portfolio include: Marketinvoice, iZettle, Dotpay/eCard, Azimo and NaviExpert.

The latest investment in Netrisk is a confirmation of the MCI.EuroVentures Fund’s investment strategy, which aims to acquire controlling stakes in mature companies operating within the digital economy with EBITDA in a range of EUR 2-25m. The Fund focuses its geographic scope on the CEE region.

MCI Capital is a leading European PE firm, with investment funds offering capital at growth, PE/LBO and private debt level. Warsaw-based company, with PLN 2.3 billion (EUR 550 million) assets under management, invests in CEE, Scandinavia, DACH, UK, Russia and Turkey. MCI concentrates on digital economy companies, and helps them become a regional and global leaders.  Since its establishment in 1999, MCI has realized over 60 investment and 30 exits, with overall 24% IRR.          

29.12.2017 Download PDF