KKR-April: April on the march

KKR clearly has a predilection for French private equity. After acquiring a minority stake in Lyon based HR software company Cegid in 2021, the Manhattan based investment group returned to the banks of the Rhone in November to take a majority stake in April. It was the biggest PE deal of the year in France.

For April, which posted growth of 8% in 2021, the move represents a “long-term strategic partnership” whose objective is to facilitate its digitalization and international expansion ambitions. “Building on [April’s] upward trajectory and its position as the French leader in wholesale insurance, the group has decided to take its ambitions to the next level and secure the means to become a key player at an international level,” noted the group in a statement.

In an interview with Leaders League following the KKR deal, Eric Maumy, who has been at the head of the French group since 2019, explained the reasons why KKR were willing to invest such a large amount. “April is no up-and-coming insurtech, we have been in business for 35 years and in recent years have been able to restore its vitality, by transforming the way we operate while also keeping the things that made the company a success in the first place, on the road to becoming a French champion in our sector,” said Maumy of the strategy put in place following his arrival, a strategy co-conceived with CVC Capital Partners, which acquired a controlling interest in April in 2019.   

For April, which posted growth of 8% in 2021, the KKR deal represents a 'long-term strategic partnership' 

That change of ownership and management led to a number of developments for a company whose turnover in 2018 was €997 million, not least of which a more robust M&A strategy. This summer, Maumy announced the acquisition of leading French wealth management consultants, Magnacarta, a move which saw April return to the wealth management arena after a decade’s absence.

As summer turned to autumn, rumors began to swirl that CVC were looking to sell up. According to the French economic press, PAI and Cinven were interested, but in the end it was the company best known across the Atlantic for its takeovers of Safeway and Toys‘R’Us, that got the nod.

“KKR beat out other high-caliber investment companies, because the team that we will have the pleasure of working alongside is in perfect sync with April’s ambition to become one of the biggest insurance brokers on the planet. By mobilizing its core fund over the course of the next 10-12 years, KKR will help us sustain growth as we develop our business internationally and roll out ever more sophisticated digital, HR and client-experience solutions,” added Maumy.  

With this investment April, which currently has 2,300 employees in 15 countries, has a green light to accelerate its development in the markets for borrowers, health and personal protection, niche property and casualty, international health insurance and wealth management.

Will KKR go shopping in France again in 2023? It would come as no surprise.