Phoenix Equity Partners (“Phoenix”), a leading UK middle-market private equity firm, is pleased to announce that it has agreed the sale of Key Retirement Group (“KRG” or “the Company”), a leading provider of financial products for retirees, to funds managed and/or advised by Partners Group, a global private markets investment manager, for a transaction value of £208 million. Completion of the transaction remains subject to clearance by regulatory authorities.
The sale of KRG will deliver a return of c.4.5x Phoenix’s investment cost and is the sixth realisation from Phoenix’s 2010 Fund. Previous exits include CloserStill, Edif Group and The Gym Group.
Since investing in 2013, Phoenix has worked closely with KRG’s management team, led by CEO Colin Taylor and Deputy CEO Simon Thompson, to achieve strong organic growth, with profits increasing threefold over the period of Phoenix’s ownership. Over this time, the Company has invested heavily in developing market-leading systems and technology, and in building a top quality team; KRG now employs 365 people in Preston, Lancashire. The Company has also played a leading role in bringing new funding into the fast-expanding lifetime mortgage market.
Sandy Muirhead, Partner at Phoenix, said: “We are delighted with the strong growth that KRG has achieved during our ownership period, and with the excellent return we have generated for our LPs on this investment. It has been a privilege to work with KRG’s outstanding management team, and we wish them, and the business, continued success with their new partners.”
Simon Thompson, Deputy CEO of KRG, said: “We would like to thank the Phoenix team for their strong support for our business. They have been outstanding partners, adding significant strategic insight and helping us through a major operational investment programme. Our group was transformed during their ownership and we look forward to continued growth alongside Partners Group.”