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Key Retirement sold to Partners Group

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  • 18/04/2017
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Key Retirement sold to Partners Group
UK mid-market investment firm Phoenix Equity Partners has sold Key Retirement Group (KRG) to Partners Group for £208m.

The vendor confirmed it pocketed a 4.5 multiple return on the deal after increasing Key’s profits three-fold.

Founded in 1998 and headquartered in Preston, Key specializes in the origination and distribution of lifetime mortgages, on behalf of third-party funders, which enable customers to release equity from their homes to fund their retirement. In 2016, KRG advised around 9,000 customers, providing around £530m in lifetime mortgages.

Partners Group, headquartered in Switzerland, is a global private markets investment management firm with over €54bn in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages customized portfolios for an international clientele of institutional investors.

 

Expanding distribution and products

Following the acquisition, which is subject to regulatory approval, Partners Group will work with KRG’s management team, led by CEO-designate Simon Thompson, on value creation initiatives aimed at expanding the company’s distribution capacity, driving forward product innovation and broadening its product portfolio.

Simon Thompson, CEO-designate of KRG, said: “There is a real need for specialist financial services for those in or approaching retirement, which creates a compelling market opportunity for KRG. We believe the Partners Group team has the right experience and network to support the successful build-out of our platform and explore new segments of the market.”

Andrew Deakin, managing director, Private Equity Europe, Partners Group, said: “KRG is the leading specialist adviser to the pre-retirement and retirement segment in the UK and has demonstrated strong organic growth since its inception. The business has significant scope for further value creation and we look forward to working with Simon Thompson and his team to build out KRG’s service offering over the next several years.”

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