A private equity funder is behind the purchase of one of the businesses of Parabis – the alternative business structure which itself was one of the first law firms to attract external funding.

It emerged this week that City of London-based Electra Partners provided £2m to a company in its portfolio, Davies Group, to buy Parabis’ property and liability loss-adjusting business.

The subsidiary, which traded under the name Argent, was one of several strands of Parabis’s business acquired by different entities after Parabis entered a pre-pack administration.

The Davies Group handles more than 150,000 property, commercial, motor and specialist liability claims each year on behalf of insurance companies, large corporates and brokers.

The terms of the bolt-on acquisition have not been disclosed. Electra already has an £89m stake in the Photobox Group and has current investments in holiday parks, a bowling-centre operator and shoe retailer.

Alex Fortescue (pictured), chief investment partner at Electra Partners, said: ‘This acquisition adds to Davies’s existing presence in property and liability claims management, and strengthens the company’s position further as it executes its organic and acquisition-led growth strategy.’

Parabis was one of the first ABSs to attract private equity investment, in 2012.

But owner Duke Street confirmed earlier this year that it has written down a £21m investment in the company. It is expected the sale of its various businesses will recoup around two-thirds of the company’s debts.

Meanwhile, insurance firm Horwich Farrelly has announced it has recruited seven partners and 36 other lawyers and support staff from the Parabis Group.

Most of the new additions were previously with defendant firm Greenwoods before its merger with the Plexus Law division of Parabis in 2013.

The additional personnel will increase the total number of Horwich Farrelly’s staff to 660 and also extend the firm’s geographical reach, both in London and through the opening of a new office in Southampton to accommodate around 20 ex-Parabis partners and employees.