Palatine in £14m swoop on Towergate assets
MANCHESTER-based private equity firm Palatine has announced a double deal worth £14m to buy mortgage boker John Charcol and Towergate Financial Planning.
The firm has bought the two London-based businesses from insurance intermediary Towergate Group.
Towergate Financial Planning will be rebranded in the coming weeks while John Charcol will continue to trade under the brand it has built over the last 40 years.
In addition to an initial purchase price of £8.64m, Palatine is investing a further £5m for the financial separation of the two businesses, to boost growth and improving systems . As part of the transition from the vendor, the management teams plan to invest heavily in new IT and back office systems.
Palatine has backed former director Ian Darby and the existing management team of both businesses in the MBO. Ian Darby has joined as full time executive chairman of the businesses and will work alongside the incumbent management team. The John Charcol team will also be joined by Simon Knight as chief executive with further senior appointments to both teams expected soon.
Ian Darby is extremely familiar with the businesses having been at the helm of both before moving to Aviva Life in 2011 as retail director to implement its direct strategy. New John Charcol chief executive Simon Knight begun his career in the mortgage industry with the business in 1987.
Darby said: “I am delighted to be able to lead this transaction to invest in a growing national financial advisory and mortgage broking business. They both employ some truly great people and we have an excellent strategy to develop and strengthen its routes to market through intelligent strategies and investment. The market opportunities available to both businesses are significant and we look forward to capitalising on these over the next few years.”
Tony Dickin and Andy Strickland led the deal for Palatine Private Equity and will join the boards of both companies.
Dickin, a partner at Palatine said: “This is a great opportunity for us to invest in two excellent businesses, operating in sectors with positive market dynamics and growth opportunities. We very much look forward to working with Ian and the team in taking both businesses forward.”
Palatine was advised by Catalyst Corporate Finance, law firm Gateley (Mark Halliwell), BDO (financial DD by Chris Grove) and CiL (commercial DD).
