Partners Group has agreed to buy UK-based Key Retirement Group, a provider of advice and financial products for people near or in retirement. No financial terms were disclosed.
Partners Group, the global private markets investment manager, has agreed to acquire UK-based Key Retirement Group (“KRG” or “the Company”) on behalf of its clients. The Company is being acquired from Phoenix Equity Partners, a leading UK middle-market private equity firm, in a transaction that values the Company at over GBP 200 million.
Founded in 1998 and headquartered in Preston, KRG is a leading UK provider of independent specialist advice and financial products for individuals approaching or in retirement. The Company specializes in the origination and distribution of lifetime mortgages (LTMs), 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 GBP 530 million in LTMs.
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, comments: “We are very pleased to welcome Partners Group as our new owner and look forward to further building on the significant growth we have enjoyed over the last few years. 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, adds: “This is a great opportunity to support an established market leader within a high-growth market niche. 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.”
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 54 billion (USD 57 billion) in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, Denver, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Manila, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 900 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a major ownership by its partners and employees.