Cinven to reap 7x from Partnership IPO

The offer price was set at 385p per ordinary share for a total offer size of £485m, equating to a 31% free float. Cinven may sell up to an additional 18,899,353 shares (up to 15% of the offer), assuming the over-allotment option is exercised in full.

The implied £1.54bn market cap will make PAG eligible for inclusion to the FTSE 250 at the next review date in September.

PAG stated earlier in the year that proceeds from the IPO will be used to repay external debt and shareholder loan notes, as well as for general corporate purposes.

The IPO is set to generate gross proceeds of more than £300m for Cinven's investors as the GP stands to reap a 7x return on its original investment in PAG. Cinven will retain a 52% stake, valued at £800m based on the IPO price.

This follows up on the listing of Ziggo, another Cinven portfolio company, on the NYSE Euronext Amsterdam in March 2012 – the GP had reaped a 2.8x multiple on its investment and further sold down its holding in the following months.

Previous funding
Cinven acquired PAG, a provider of financial products for people with health conditions, from Phoenix Equity Partners for a total consideration of £158m in 2008. The exit generated a 6.7x money multiple and a 106% IRR for Phoenix.

Company
Established in 2005, PAG provides non-standard annuities and aims to offer better terms to customers with medical conditions. It generated an operating profit of £112m last year, up 42% on 2011 figures.

People
Peter Catterall and Maxim Crewe represented Cinven.

Advisers
Company – BofA Merrill Lynch (Joint sponsor, joint global coordinator); Morgan Stanley (Joint sponsor, joint global coordinator); Keefe Bruyette & Woods (Co-lead manager); Panmure Gordon & Co (Co-lead manager); Evercore (M&A).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• UK / Ireland
• Financials
• IPO
• Cinven