Goldman Sachs has agreed to sell its entire stake in Rothesay Life.
The sale is for an undisclosed sum to funds managed or advised by Blackstone’s Tactical Opportunities business, GIC (the Singapore Sovereign Wealth Fund) and Massachusetts Mutual Life Insurance Company.
Rothesay Life is a leading buyout insurance company with clients including the defined benefit pension schemes and members associated with such names as RSA, British Airways, Rank, Uniq, General Motors, the MNOPF (Merchant Navy Officers Pension Fund), InterContinental Hotels, Philips, GKN, Lehman Brothers and the Civil Aviation Authority.
Upon the successful completion of the transaction: the shareholders will each acquire a portion of Goldman Sachs’ shares such that GIC and Blackstone will hold equal largest stakes and MassMutual will increase its stake substantially.
Goldman Sachs will no longer hold any interest in Rothesay Life, but bosses claimed thet will continue to have a close relationship with the company that it founded in 2007.
Since the initial investment by the shareholders in December 2013, Rothesay Life has grown its assets under management (AUM) from £7.5bn at the end of 2013 to £23.7bn at the end of 2016.
This growth was through a combination of corporate defined benefit pension transfers, back-book reinsurance and corporate acquisitions.
The transaction is expected to close in the final quarter of 2017 and is subject to regulatory and anti-trust approvals.
Addy Loudiadis, chief executive of Rothesay Life, said: “Rothesay Life is extremely grateful to Goldman Sachs for its support since it founded the business in 2007. We are also grateful to our other shareholders for their increased investment in the business.
"We are delighted that these shareholders are supporting the company’s growth and development. We look forward with confidence to taking advantage of the considerable growth opportunities we see in the sector.”
Qasim Abbas, senior managing director at Blackstone Tactical Opportunities, said: “We are delighted to increase our investment in Rothesay Life. It is an outstanding business and we look forward to supporting its further growth.”
Choo Yong Cheen, chief investment officer of private equity at GIC, said: “Rothesay Life is a good example of GIC’s investment objectives as a long-term investor.
"Rothesay Life offers an important service, has a differentiated strategy and strong growth prospects with the increasing demand for annuity risk transfer solutions.
"We are delighted to have the opportunity to increase our shareholding and continue to support the management team alongside Blackstone and MassMutual.”
Tim Corbett, chief investment officer of MassMutual, said: “There is a tremendous market opportunity for de-risking solutions in the UK, and Rothesay Life, with its proven track record of success, is well-positioned to capitalise on that demand.
"This acquisition underscores the tremendous relationship we enjoy with Rothesay Life’s talented leadership team, and are very much looking forward to this next chapter of our partnership.”
stephanie.hawthorne@ft.com
