Prefequity backs HCI International Healthcare

London-based HCI is a provider of private medical insurance to expat professionals in over 120 countries.

Established in 2000 HCI acts as both a broker and an insurance carrier via its Guernsey-based affiliate, GIGL. The company benefits from a high retention rate from its individual customers and is achieving strong growth in its corporate business, particularly via its office in Dubai.

Prefequity has provided a debt-based investment to HCI to refinance its existing bank debt and to support organic growth.

Theo Dickens, Managing Partner at Prefequity, who will join the board of HCI, commented, “We are delighted to be partnering with HCI. The management team has built a strong franchise in a niche segment of the health insurance market that enjoys a high level of recurring revenue, above-inflation price increases and favourable demographics. This transaction is another excellent example of our philosophy of offering investors strong downside protection coupled with the opportunity to generate attractive risk-adjusted returns through our equity ownership”.

Shane Younger, CEO at HCI, added: “The Prefequity team delivered a flexible funding package that was a creative alternative to a traditional private-equity structure. We look forward to working together over the next few years as we continue to grow HCI and to take advantage of the significant market opportunities we have identified.”