The future's bright; the future's private equity-owned.
DAC Beachcroft in in talks to sell half the firm, RollOnFriday understands.
Limerston Capital, a private equity fund, is in exclusive talks to purchase the Claims Solutions Group (CSG) from DACB, according to a source.
Held as DAC Beachcroft Claims Ltd, CSG handles personal injury and specialist claims on behalf of insurers and corporate clients. It operates in 12 UK locations and the Republic of Ireland, and employs over 1,000 people – roughly half of DACB’s workforce.
In a statement DACB told ROF, “Following an in-depth strategic review of our business, we have decided to explore all our options to enhance the long-term investment into our Claims Solutions Group”.
The firm said that CSG was operating in a “very dynamic market” [translation: cratering] and "we are constantly assessing those markets and adapting our strategy to ensure that we are able to invest in the future of CSG in a way that enhances CSG’s overall offering and benefits our clients”.
UK-based Limerston describes itself as a lower mid-market buyout fund focused on “driving value through buy-and-build and operational transformation”.
Its current investments include the Village Bakery chain and Arch Sciences, the laboratory research group.
DACB staff have described their firm as “two firms in one”, with the LLP on one side and CSG on the other. “There is a clear divide between the fat cats in the LLP and the poor personal injury lawyers in the Claims Solutions Group side of the business”, said one person.
Some spoke of a pecking order where “the personal injury side of the business is considered the lowest of the low within the firm”, and its staff are paid "like peasants whilst the LLP live in rarified air”.
“CSG is very much seen as the poor relation and unfortunately, over time, that perception is not getting any better”, said another person.
That sad split may soon be resolved if Limerston adds CSG to its investment portfolio, in which case smarting CSG staff will have new stablemates. If they’re lucky they could score boutique breaks at Limerston-owned Largo Leisure Holidays. If not they could be experimented on at Concept Life Sciences.