Goldman Sachs has agreed to divest its entire stake in Rothesay Life for an undisclosed price to funds managed or advised by Blackstone’s Tactical Opportunities business and GIC, and Massachusetts Mutual Life Insurance.
Upon closing of the transaction, Blackstone and GIC will become the largest shareholders with equal ownership stakes in the UK-based regulated insurance solutions provider. Massachusetts Mutual Life Insurance on the other hand will substantially raise its stake.
All the three companies are existing investors in Rothesay Life with GIC and Blackstone owing 26.5% each and MassMutual having a stake of 6.5% as per a report in Reuters.
GIC private equity chief investment officer Choo Yong Cheen said: “Rothesay Life is a good example of GIC’s investment objectives as a long-term investor.
“Rothesay Life offers an important service, has a differentiated strategy and strong growth prospects with the increasing demand for annuity risk transfer solutions.’
Though Goldman Sachs will divest its stake reported to be 32.7%, it will continue to work closely with the UK-based regulated insurance solutions provider which it established in 2007.
Goldman Sachs EMEA chief operating officer Dermot McDonogh said: “The sale of our remaining stake in Rothesay Life concludes our ten year investment, from founding to supporting the growth of this market leading company.”
Rothesay Life, which offers annuity risk transfer solutions in the UK, is to benefit from the long-term support from its shareholders through the transaction. The transaction will enable it to continue offering clients with a complete range of solutions on a big scale.
Some of the clients of Rothesay Life include the pension schemes of RSA, British Airways, General Motors, Rank and Uniq.
Subject to receipt of regulatory and anti-trust approvals, the transaction is anticipated to be completed in the fourth quarter of the year.
Image: Goldman Sachs headquarters in New York City. Photo: courtesy of Quantumquark/Wikipedia.org.