Blackstone, GIC and MassMutual have reach an agreement to acquire Goldman Sachs’ entire shareholding in Rothesay Life.
GIC, the largest Singapore sovereign wealth fund, and investment manager Blackstone will hold equal largest stakes, while insurer MassMutual will significantly increase its stake share.
Goldman Sachs said it plans to retain a close relationship with Rothesay Life, which it founded in 2007, and the firm will receive the additional support and backing of its three shareholders.
Addy Loudiadis, CEO of Rothesay Life, said; “Rothesay Life is extremely grateful to Goldman Sachs for its support since it founded the business in 2007. We are also grateful to our other shareholders for their increased investment in the business.
“We are delighted that these shareholders are supporting the company’s growth and development. We look forward with confidence to taking advantage of the considerable growth opportunities we see in the sector.”
Since 2013, when the shareholders initially invested in Rothesay Life, the firm grew its AUM from £7.5 billion to £23.7 billion in just three years, through a combination of corporate defined benefit pension transfers, back-book reinsurance, and corporate acquisitions.
Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC, said; “Rothesay Life is a good example of GIC’s investment objectives as a long-term investor. Rothesay 2 Life offers an important service, has a differentiated strategy and strong growth prospects with the increasing demand for annuity risk transfer solutions.
“We are delighted to have the opportunity to increase our shareholding and continue to support the management team alongside Blackstone and MassMutual.”
Rothesay Life is one of the UK’s leading providers of annuity risk transfer solutions, the firm will continue to service its clients with a full range of solutions of a large scale upon expected completion of the transaction in Q4 2017, subject to regulatory and anti-trust approvals.
Tim Corbett, MassMutual Chief Investment Officer, said there’s a tremendous market opportunity for de-risking solutions in the U.K., and Rothesay Life, “with its proven track record of success, is well-positioned to capitalise on that demand.
“This acquisition underscores the tremendous relationship we enjoy with Rothesay Life’s talented leadership team, and are very much looking forward to this next chapter of our partnership.”
Goldman Sachs EMEA, Chief Operating Officer, Dermot McDonogh, said the sale of its remaining stake in Rothesay Life concludes the firm’s ten year investment, since it founded the firm in 2007.
“We wish the company, the management team and the shareholders continued success and we look forward to maintaining a close relationship in the future,” he added.