Synova backs Defaqto management buyout

With Synova on board Defaqto is looking to double the size of its business through ‘organic activities’ over the next few years.

The outgoing shareholders Foresight Group and Fleming Family Partners netted £27.6m as part of the deal.

Zahid Bilgrami, Defaqto’s chief executive, said: “We believe there are a number of exciting opportunities ahead of us, including the expansion of the products and services that we offer to our customers on top of our unique product intelligence.”

Philip Shapiro, a managing partner at Synova and now non-executive director of Defaqto, said: “We are delighted to be partnering with Defaqto’s impressive management team who have delivered exceptional growth in recent years.

“We believe that Defaqto will continue to grow strongly as it provides greater transparency to the highly complex and heavily regulated retail financial services market.”

Defaqto helps advisers and their clients assess the quality and comprehensiveness of insurance and protection policies.

Since Foresight got involved in Defaqto from 2011 revenues and profitability have increased.

Its outgoing partner and director Russell Healey, said: "We are confident that Defaqto is well-positioned to flourish in the next phase of its development."