Towergate receives £100m investment boost
by David Masters
Story link: Towergate receives £100m investment boost
Towergate’s executive chairman, Peter Cullum, has sold a £100 million stake in his firm to U.S.-based hedge fund Och-Ziff Capital Management Group.
Och-Ziff is to buy preferred ordinary shares in Towergate. This adds to the £100 million of preference shares that Och-Ziff purchased along with Reservoir Capital in November 2006.
Towergate’s board of directors and shareholders will share the majority of the money, whilst the group’s 2,500 staff will receive a total payout of £7.8 million. Most staff will receive a payout of between £500 and £1,000.
Towergate is an insurance underwriter and broker. It is valued at around £3 billion.
Investment firm Och-Ziff is valued at around £6.2 billion. It has made a number of successful, high-profile investments in British companies.
Recently, an £800 million deal between Towergate and Candover collapsed. If the deal had gone ahead, equity investor Candovor would have owned a 25% stake of the business.
Peter Cullum, Towergate’s executive chairman, says that the group is “very happy” with Och-Ziff’s investment.