Phoenix secures scorching 106% IRR

Tweet
Facebook
LinkedIn
Google plus
Send to

Phoenix Equity Partners has sold Partnership Assurance Ltd (PA), a provider of financial products for people with health conditions, to Cinven for a total consideration of around £150m. The exit generated a money multiple of 6.7x and an IRR of 106% for Phoenix.

The combination of the changing demographics of an ageing population, the strong trend towards defined contribution pension savings products, and the introduction of the Open Market Option to annuity purchases attracted Cinven to the deal. Partnership has grown at a CAGR of 80% over the past two years.

Phoenix acquired its 79% stake in Pension Annuity Friendly Society (PAFS), PA's predecessor, in September 2005. PAFS was established in 1995 as a writer of impaired or enhanced annuities. The deal was the UK's first private equity-led demutualisation of a financial services mutual company. In total, Phoenix invested £16.5m in the company.

London-based Partnership Assurance began trading in October 2005 as a provider of retirement annuities for customers with impaired life expectancy. It now also offers financial products for people in long term care, for life cover and equity release. Peter Catterall and Caspar Berendsen led the deal for Cinven. Ian Owen is the executive chairman of Partnership Assurance. (Page 34).