Patron Capital, the pan-European institutional investor focused on property backed investments, and Electra Partners, the independent manager of listed private equity investment trust Electra Private Equity PLC ("Electra"), have agreed the £325 million acquisition of Grainger Retirement Solutions ('Retirement Solutions'), the home reversion equity release business of Grainger plc. Completion of the transaction, in which each of Patron and Electra will invest £45 million, is subject to regulatory approvals. Board representation will be equal between Patron Capital and Electra Partners. Patron Capital will be the operating partner.
Retirement Solutions is an originator, consolidator and servicer of home reversion equity release plans. The business has around 20 staff and its current portfolio comprises over 3,500 properties.
Keith Breslauer, Managing Director of Patron Capital, said:
"As property companies increasingly look to focus on pure development activity, we are taking advantage of the significant opportunity to acquire finance-related businesses and portfolios. This deal, which follows our acquisitions of shared equity mortgage portfolios from Galliford Try and Keepmoat earlier this year, provides us with a strong business that has an extensive portfolio and attractive exposure to the UK residential property market, particularly given the ageing population."
Alex Fortescue, Chief Investment Partner at Electra Partners, said:
"This deal is another great example of the Electra Partners investment model at work, making full use of our flexible mandate to tackle a complex carve-out from a corporate.
"The investment is a strong fit with Electra's long-term capital. It offers an attractive and low-risk return, as well as some exciting opportunities to increase Retirement Solutions' scale through M&A."
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
EY Real Estate Corporate Finance advised on the transaction.
Media Enquiries to:
For Patron Capital:
Emma Kane / Rishi Banerjee / Sammy Parker
t: +44 (0) 20 7382 4720
For Electra Partners:
Andrew Honnor / Matthieu Roussellier
t: +44 (0) 20 7952 2000
Nicholas Board / Andrew Kenny
t: +44 (0) 20 7306 3902
Notes to Editors
About Patron Capital Partners
Patron represents approximately Euro 3.0 billion of capital across several funds and related co-investments, investing in property, corporate operating entities whose value is primarily supported by property assets and distressed debt and credit related businesses.
Since it was established in 1999, Patron has invested in over 60 investments and programs involving over 65 million square feet (6 million square metres) in 16 countries, with many of these investments realised.
Investors represent a variety of sovereign wealth funds, prominent universities, major institutions, private foundations, and high net worth individuals located throughout North America, Europe, Asia and the Middle East. The main investment adviser to the Funds is Patron Capital Advisers LLP, which is based in London, and Patron has other offices across Europe including Barcelona, Milan, Luxembourg and Frankfurt (Dreieich); the group is comprised of 73 people, including a 41-person investment team.
Further information about Patron Capital is available at www.patroncapital.com.
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market. During the last 25 years it has invested in excess of £4.5 billion in over 200 deals. As at 30 September 2015, the firm had funds under management of over £1.8 billion including capital available for investment of nearly £350 million.
Electra Partners' flexible investment strategy allows it to invest broadly across the private equity market with a particular focus on Buyouts and Co-investments, Secondaries and Debt. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors.
The firm's major client is Electra Private Equity PLC ("Electra"), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra's long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 30 September 2015, Electra has seen diluted NAV per share growth of 244%. This is seven times the NAV per share return of the Morningstar Private Equity Index (ex. Electra). It is also equivalent to a ten-year annualised return of 13%, at the upper end of Electra's target range of 10-15% over the long-term.
For further information please visit www.electrapartners.com
Electra Partners LLP is authorised and regulated by the Financial Conduct Authority.