Blackstone Group, GIC and Massachusetts Mutual Life Insurance each acquired further stakes in U.K. pension buyout firm Rothesay Life.
Funds managed or advised by Blackstone's tactical opportunities business, Singapore sovereign wealth fund GIC — which has more than $100 billion in assets — and MassMutual have agreed to acquire the entire stake owned by Goldman Sachs. A spokesman for Rothesay Life said that stake amounts to 33% of the business.
The new split and terms of the deal were not disclosed, but GIC and Blackstone will hold equal largest stakes, with MassMutual increasing its stake substantially, said a news release Wednesday. Blackstone-managed funds and GIC each acquired a 28.5% equity stake in Rothesay Life, while MassMutual acquired a 7% stake, in 2013. Rothesay Life management holds the remaining stake.
Goldman Sachs, which founded the company in 2007, will continue to have a "close relationship" with the firm, but will no longer hold any interest in Rothesay Life.
Rothesay Life has assets under management of £23.7 billion ($30.9 billion) through a combination of corporate defined benefit fund transfers, back-book reinsurance and corporate acquisitions.
The deal is expected to be completed in the fourth quarter, subject to regulatory and anti-trust approvals.
Choo Yong Cheen, chief investment officer of private equity at GIC, said in the release: "Rothesay Life is a good example of GIC's investment objectives as a long-term investor. Rothesay Life offers an important service, has a differentiated strategy and strong growth prospects with the increasing demand for annuity risk transfer solutions. We are delighted to have the opportunity to increase our shareholding and continue to support the management team alongside Blackstone and MassMutual."
