KRS is an independent distributor of equity release loans and a top ten distributor of annuities.
It also provides estate planning services, while its subsidiary More2Life is a growing equity release lender.
The deal includes £2m of cash held on balance sheet, from Cabot Square Capital. Completion of the deal remains subject to regulatory approval.
In the year to 31 December 2012, KRS generated EBITDA of £5.2m, and employs 240 people.
Phoenix said KRS’s existing management team would remain in place, led by chief executive Colin Taylor. It said the management team is investing alongside Phoenix in this acquisition.
It added the business would look to expand following the transaction.
Taylor said: “Since launch KRS has worked tirelessly to improve the level of financial advice available to those approaching or in retirement. We are excited about partnering with Phoenix, a firm with considerable experience of investing successfully in the retirement segment of financial services, to continue to build KRS into the trusted brand for the over 55s.”
Preston-based Key Retirement was founded in 1998 as an equity release specialist.
