Towergate Partnership, a London-based insurance intermediary, has entered into a conditional agreement in relation to a £200m investment by Advent International, an private equity firm.
As a result of the investment, Advent will acquire separate shareholdings in each of Towergate and Cullum Capital Ventures (CCV).
Towergate said that the investment is conditional upon raising new debt facilities through the bank and bond markets. The completion of the investment and debt capital raising initiative is expected to be take place during mid-February.
The benefits of the transaction include: refinancing Towergate’s existing debt facilities, reducing its total borrowings and establishing a long-term capital structure on more favorable terms; increasing Towergate’s funding capacity to pursue its acquisition-led growth objective.
The investment also helps Towargate in securing a supportive partner with well-recognised credentials to assist in the next stage of the group’s development and providing opportunities for the group to extend its range of specialist insurance services to further improve its client proposition.
Towergate CEO Andy Homer said this transaction follows a strong year for Towergate despite the ongoing tough economic conditions.
"We will continue to invest across our business and maintain a strong focus on acquisitions, a strategy which has delivered significant value over the last decade," Homer said.
Towergate chairman and founder Peter Cullum said that this marks an important milestone for Towergate. Advent’s investment provides real firepower as the group reignites its acquisition program as part of ambitious growth strategy.