CVC acquires stake in Pension Insurance Corporation

According to the Financial Times, the deal will value the business at around £2bn and will see CVC take a 10-20% stake in the business from vendors reportedly including RBS. While details of the transaction remain undisclosed, unquote" understands the reported figures are broadly accurate.

The deal marks the third investment from CVC's Strategic Opportunities Platform, a $4.4bn vehicle with a 15-year lifespan set up to make long-term investments. The fund's previous deals include a 40% holding in motorway service provider Moto and the acquisition of RAC, both made in 2015.

The PIC deal is subject to regulatory approval.

Company
Founded in 2006, London-based PIC is a specialist insurance company and provider of bulk annuities to corporate pension schemes. The business has more than £20bn in financial assets incorporating policies for 130,000 individuals. In 2015, the business reported revenues of £3.3bn with £136m in profits before tax, according to publicly available documents.

People
CVC Capital Partners – Peter Rutland (partner, global co-head of financial services).
Pension Insurance Corporation Group – Tracy Blackwell (CEO).

Advisers
Equity – Jefferies (corporate finance); EY (financial due diligence); Oliver Wyman (management due diligence); Slaughter and May (legal).

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• CVC Capital Partners
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