Business

GIC part of buyout of Goldman Sach's stake in Rothesay Life

Global investment firm Blackstone, Singapore sovereign fund GIC and Massachusetts Mutual Life Insurance Company (MassMutual), have agreed to acquire Goldman Sachs' shareholding in British-based pensions provider Rothesay Life for an undisclosed sum.

Upon successful completion of the transaction, GIC and Blackstone will hold equal largest stakes in Rothesay Life, while MassMutual will increase its stake substantially in the pension provider.

GIC and Blackstone previously owned 26.5 per cent each, while MassMutual had a 6.5 per cent stake.

While Goldman Sachs will no longer hold any interest in Rothesay Life following the sale of its 32.7 per cent stake, it will continue to have a close relationship with the company it founded.

Since the initial investment by shareholders in December 2013, Rothesay Life has grown its asset under management from £7.5 billion (S$13.2 billion) to £23.7 billion last year through a combination of corporate defined benefit pension transfers, reinsurance and acquisitions.

The transaction is expected to close in the fourth quarter and is subject to regulatory and anti-trust approvals.

Established in 2007, Rothesay Life has become a leading provider of annuity risk transfer solutions in Britain.

It helps companies to shed the risks associated with their pension scheme liabilities.

Clients include the pension schemes and members associated with firms such as RSA, British Airways, General Motors and Philips. - THE STRAITS TIMES

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