Permira complets the acquisition of Just Retirement by the Permira funds for 228 millio. This is the funds first financial services investment since a dedicated sector team headed by James Fraser was set up in 2008.
Founded in 2004, Just Retirement is a specialist financial services company that provides innovative financial solutions designed to meet the needs of people at or in retirement. The company is a market leader in providing enhanced retirement annuities, a product which takes into account the specific health and lifestyle circumstances of a retired customer to offer significantly better rates than traditional annuity providers. The firm also offers a very attractive equity release solution that enables retirees to unlock money from their home. Just Retirement is recognised for its very high service levels and was recently voted Company of the Year at the 2009 FT Financial Advisor 5 Star Service Awards amongst all mortgage, life, pensions and investment providers by over 1,500 IFAs.
The company operates in a fast growing market supported by favourable demographics. The Permira funds investment will provide an opportunity to build upon Just Retirements existing market leading position in enhanced annuities while expanding further and supporting its customers, independent financial advisers and distribution partners. Permira intends to support and work with Just Retirements existing management team to further develop and strengthen the business long-term growth prospects.
The acquisition is entirely funded by equity. In addition to the purchase price of 228m, a further capital injection of 25 million will be made by the funds to enhance Just Retirements prospects and support the long term growth of the business.
This acquisition is the second investment by the Permira funds this year. In February 2009, the Permira funds successfully completed the acquisition of the pay-TV technology business NDS. Despite the challenging environment the Permira funds have deployed over 900 million of capital to date this year on behalf of their investors in two proprietary public to private investments. This makes Permira one of the most active private equity investors in Europe this year.
Permira was advised by Credit Suisse. Just Retirement was advised by Deutsche Bank.
D.C.