Following the sale, Blackstone and GIC will hold equal stakes and both become the largest shareholders in Rothesay, while MassMutual will see its existing stake increase substantially.
Details of the sale, which is expected to close in the fourth quarter of 2017, were not disclosed.
Goldman Sachs will no longer hold any interest in the company, which it founded in 2007, but will continue to have a close relationship with Rothesay Life.
Rothesay Life
Regulated by the UK’s Financial Conduct Authority and the Prudential Regulation Authority, Rothesay Life specialises in bulk annuities and other de-risking solutions for defined benefit schemes and insurance companies.
It provides solutions for clients looking to mitigate financial and longevity risk.
Rothesay Life has grown its AUM to £23.7bn ($30.8bn, €26.2bn) as of end of 2016 up from £7.5bn at the end of 2013 through a combination of corporate defined benefit pension transfers, back-book reinsurance and corporate acquisitions.
Strong prospects
Choo Yong Cheen, chief investment officer of Private Equity at GIC, said: “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.”
Tim Corbett, MassMutual chief investment officer, said: “There is a tremendous market opportunity for de-risking solutions in the UK, and Rothesay Life, with its proven track record of success, is well-positioned to capitalise on that demand.”
Dermot McDonogh, chief operating officer for Goldman Sachs Emea, said: “The sale of our remaining stake in Rothesay Life concludes our 10-year investment, from founding to supporting the growth of this market leading company.”
