Fairfax Financial Holdings Limited has successfully completed the sale of its interests in RiverStone Europe to CVC Capital Partners.
First announced in December 2020, the transaction was finalised with a purchase price of approximately $700 million.
Alongside the purchase price, Fairfax will also be entitled to receive up to $235.7 million post-closing under a contingent value instrument.
Following the sale, RiverStone Europe will now operate under the name RiverStone International.
Luke Tanzer, Managing Director of RiverStone Europe, will remain in his post while Nick Bentley, the Chief Executive Officer (CEO) of the RiverStone Group, will continue to serve on the board of RiverStone Europe.
Speaking alongside the original announcement of the sale, Tanzer explained that the change of ownership would provide RiverStone Europe with “a runway for further growth as we continue to offer the most trusted and effective run-off solutions in the insurance market.”
Peter Rutland, Managing Partner and Head of Financial Services at CVC, agreed that RiverStone Europe is “ideally suited” to CVC’s Strategic Opportunities platform, which specializes in backing established businesses in stable markets that have long term growth ambitions.
“We have got to know RiverStone and Fairfax over many years, and are delighted to now have the opportunity to work with Luke Tanzer and his experienced team,” Rutland stated at the time.