AshGrove Capital Provides €21 Million ARR Financing Facility to Xempus AG
Xempus is a leading European pension, life and health insurance distribution platform
AshGrove’s investment will help to drive Xempus’ continued organic growth and provide additional firepower for opportunistic M&A
London, July 23, 2024 -– AshGrove Capital is pleased to announce a €21 million senior secured investment in Xempus AG (“Xempus” or “the Business”), the leading SaaS platform for sales and management of pension, life and health insurance policies in Germany.
The Xempus platform is used to sell ~350,000 new policies per year and manage over 2,000,000 existing policies, connecting ~58,000 agents/brokers with a customer base of ~250,000 corporates.
The Business has grown its recurring revenue base rapidly over recent years, underpinned by strong regulatory drivers, demographic tailwinds within Germany, and the long-term growth of corporate pensions. Through the return on investment delivered by its digital proposition, Xempus has gained significant share of policies distributed and managed in a market that has historically largely relied on less technologically advanced approaches.
With the help of AshGrove’s capital, Xempus will seek to continue its rapid growth trajectory via both organic initiatives, such as continued market share gains and expansion of product coverage, and M&A.
This marks the second investment by AshGrove Specialty Lending Fund II (ASLF II), a fund committed to providing tailored credit solutions to high quality small and medium sized European B2B software and services companies.
Jon Ferguson, Partner at AshGrove Capital, commented: “Having tracked the exceptional progress of the Business since we were first introduced in 2021, we are delighted to now be partnering with Xempus and providing the Business with further firepower as it continues to take share in the German market. We have been particularly impressed by Xempus’ retention metrics, driven by its well-invested tech platform and embedded position with the German Life & Pensions ecosystem. Our domain expertise in the Pensions Technology space positioned AshGrove as the logical partner for Xempus, and we are excited to work with the management team, Goldman Sachs Asset Management, HPE Growth and other shareholders to deliver on the growth objectives of the Business over the coming years.”
About AshGrove Capital
AshGrove Capital is an independent pan-European specialty lender providing tailored credit solutions to European small and medium sized companies. The Firm focuses on senior secured investments in companies with resilient business models within B2B software and services, building long-term partnerships with businesses and their stakeholders. AshGrove integrates ESG principles and values in all aspects of its business, promoting responsible and sustainable business practices.
For more information, please visit www.ashgrovecap.com
About Xempus
Xempus is a leading European pension, life and health insurance distribution platform. Its software-as-a-service (SaaS) offering allows insurers, insurance agents, corporates, and employees to buy and manage pension, life & health insurance online. They benefit from seamless information flows, user-friendly customer journeys, as well as connectivity to all relevant stakeholders on a single software-as-a-service platform.
For more information, please visit https://www.xempus.com/
Contact
AshGrove Capital
ashgrove@burwaycapital.com
