Patron and Electra in £325m Grainger carve-out

According to Patron and Electra, each will be investing a £45m equity ticket as part of the takeover.

Pending regulatory approval, the investing duo will secure identical board representation in the spinout. However, Patron will become the operating partner, while Electra will take a back seat in the running of the business.

This approach was also adopted by Electra for the acquisition of British property management service Peverel Group in March 2012, when Electra joined Chamonix Private Equity in purchasing the asset out of administration. 

Patron's buyout of a shared equity mortgage specialist comes on the back of the purchase of similar dedicated portfolios from corporates Galliford Try and Keepmoat in 2015.

The wave of acquisitions comes more than one year after the property investor divested senior carehome operator Gracewell Healthcare and budget accommodation provider Generator Hostels.

Company
Prior to the carve-out, Grainger Retirement Solutions was a subsidiary within corporate Grainger, a listed residential landlord founded in 1912. Employing a 20-strong workforce, the business unit specialises in residential equity release products and manages a portfolio of 3,500 properties in the UK.

People
Patron's work on the deal was led by managing director Keith Breslauer, while Electra was represented by chief investment partner Alex Fortescue.

Advisers
Equity – EY Real Estate Corporate Finance (Corporate finance).

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• Topics
• Buyouts
• Consumer
• UK / Ireland
• United Kingdom
• Electra Partners LLP
• Patron Capital Partners