Blackstone et al. buy stake in Rothesay Life from Goldman Sachs

The deal comes almost four years after the consortium of investors acquired a majority stake in the insurance provider from Goldman Sachs.

Following the latest deal, Blackstone and GIC (which partially owns unquote" parent company Acuris) will continue to hold stakes of equal sizes in Rothesay Life, which make them the joint-largest shareholders. According to a statement, MassMutual will also increase its stake "significantly".

Goldman Sachs has fully exited the company via the transaction, having originally founded the business in 2007. Following the initial partial divestment in 2013, the vendor retained a 36% stake with Blackstone and GIC owning 28.5% each and MassMutual holding 7%.

The latest deal is subject to regulatory and anti-trust approvals and is expected to complete in Q4 2017.

Since the 2013 investment, the business has increased its assets under management from £7.5bn to £23.7bn, according to the aforementioned statement, via benefit pension transfers, back-book reinsurance and acquisitions. Most recently, Rothesay Life acquired a £6bn annuity portfolio from Aegon UK in April 2016.

Previous funding
Blackstone, GIC and MassMutual acquired a combined majority stake in Rothesay Life from Goldman Sachs in October 2013.

Company
Founded in 2007, London-headquartered Rothesay Life provides insurance to pension schemes and their members. The business has £23.7bn of assets under management.

People
Blackstone Tactical Opportunities - Qasim Abbas (senior managing director).
GIC - Choo Yong Cheen (chief investment officer).
Massachusetts Mutual Life Insurance Company - Tim Corbett (chief investment officer).
Goldman Sachs - Dermot McDonogh (chief operating officer).
Rothesay Life - Addy Loudiadis (CEO).

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