PensionsMay 13 2013

Partnership to raise £120m through listing

Search sponsored by

Non-standard annuity provider Partnership has announced its intention to list on the London Stock Exchange, in a move that the company hopes will raise around £120m.

Private equity backer Cinven Partners is selling a portion of the shareholding that is held by a number of its funds, alongside management shareholders.

Partnership has said it will augment these exits with the issuance of new ordinary shares to place around 25 per cent of its shares, which it says will raise approximately £120m. The proceeds will go towards paying external debt and shareholder loan notes, and other general corporate purposes.

Steve Groves, chief executive officer at Partnership, said: “The drivers behind our growth are sustainable: The shift from defined benefit to defined contribution pensions, ageing demographics, increasing regulatory and consumer awareness of the benefits of shopping around for an annuity, and providing the right product for our customers.

“For us, this is underpinned by the insight sourced from our proprietary IP and extensive distribution. With penetration of these better value products currently at only about half their potential, there is a clear opportunity for further strong growth in the years ahead.”

Partnership chairman Chris Gibson-Smith added: “The IPO is a natural step for Partnership, and the profile generated in the public markets will support its continued growth as the population ages and the potential demand for secure retirement income grows substantially.”