2010

Year

Business Services

Sector

InterResolve

Client

Capital raising

Acquired By

InterResolve / Capital raising

Cavendish Corporate Finance LLP is pleased to announce it has closed a major expansion capital raising for InterResolve, the leading claims resolution specialist which provides an independent mediation led approach to personal injury claimants in the car insurance industry. The deal involves an equity investment from Balderton Capital which will allow InterResolve to build a substantial war chest of around £30m for claims acquisition.

InterResolve’s business model cuts out no-win, no-fee lawyers who add substantial costs and delays to simple personal injury claims arising from road traffic accidents. InterResolve’s innovative approach has won multiple industry awards and also secured an exclusive partnership with Enterprise Rent-a-car to address all the injury and vehicle needs of non-fault drivers in accidents.

The expansion fundraising managed by Cavendish will provide InterResolve with the capital it needs to acquire claims of legitimate motor accident claimants before they are sold off to lawyers. InterResolve then arranges early medical care, independent legal advice and earlier compensation for claimants – all at a fraction of the usual cost to insurers. The company aims to secure enough claims to get a significant share of the market and in so doing save the car insurance industry billions of pounds and get a better deal for thousands of consumers.

Cavendish worked with InterResolve to prepare the business for a funding round in late 2009 that would enable them to raise the necessary capital to execute their business plan. Cavendish prepared and ran an equity fundraising process, approaching a wide range of potential investors, whereupon Balderton Capital became the front runner as they quickly grasped the substantial market opportunity of the disruptive InterResolve business model.

Simon Ramery, the partner who led the transaction, commented:

“We are very pleased to have assisted such an exciting business as InterResolve in securing the necessary funding to accelerate its growth. This deal demonstrates that significant capital is available from investors when an early stage business has a compelling value creation story. With this investment, InterResolve has the firepower to take on the inefficient incumbents in the personal injury claims market which should bring benefits for claimants and policyholders alike.”

Peter Ashdown-Barr, the Chief Executive of InterResolve, commented:

“Cavendish brought to the table extensive contacts in the venture capital industry and an understanding of how to present our investment case in the best light. All our business had been lacking was funding to achieve scale and with the capital secured from Balderton we are now empowered to bring about lasting change in the insurance industry and create significant value for all our shareholders along the way. We are delighted with the deal and with the invaluable help that Cavendish provided in obtaining it.”

Tim Bunting, Partner at Balderton Capital, added:

“InterResolve has demonstrated that it has a viable alternative to the current personal injury claims process. We believe that InterResolve has the structure and ability to deliver change across the market and we have every confidence in Peter’s ability to build the business further.”

Key Contacts

Steph Frayne

Executive

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Ben Goldring

Director

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Mike Dinsdale

Associate Director

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Chirag Gohil

Senior Executive

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Jon Edirmanasinghe

Partner

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Peter Gray

Partner

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Andrew Jeffs

Partner, Business Services

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