Chicago-based private equity firm Madison Dearborn Partners (MDP) has moved to acquire a stake in broking giant Towergate.
Through its investment vehicle Tango Investments, MDP has offered to purchase all the shares in Sentry Holdings and TIG Topco, both parent companies of Towergate.
If the transaction is closed within a month, it will give MDP a 23% stake in Towergate, according to reports by The Times
and regional news website Kent Online
“Madison Dearborn Partners are a large and highly experienced investor and their desire to buy a stake in Towergate is another vote of confidence in our unique platform, strategy and future ambition,” said Towergate CEO David Ross.
HPS Investment Partners, the majority shareholder of Towergate, has agreed not to sell any of its shares in the brokerage to any other third party for up to five years following the completion of the deal with MDP.
“We are pleased that our core shareholders have each committed to retain their current holdings, with HPS Investment Partners in particular maintaining its current position as our majority shareholder for the foreseeable future,” Ross said.
According to Towergate, HPS and shareholders KKR Credit Advisors and Bain Capital Credit have all agreed to vote in favour of capital-raising if certain provisions are met.
Sentry and TIG Topco said they will remain neutral towards MDP’s offer and will not express any opinion because the discussions are between the US firm and the other Towergate shareholders.
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