Towergate&#039s proprietors to create new Uk insurance broking group – Reuters

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* HPS, Madison Dearborn are main investors

* New group getting Nevada for 250 mln lbs .

* New group reviewing framework, might refinance present debt
(Provides particulars, qualifications)

By Simon Jessop and Carolyn Cohn

LONDON, Might nine The the greater part proprietors of insurance
broker Towergate, which restructured its debt two decades ago,
explained on Tuesday they prepared to carry collectively their several Uk
broking corporations into a new keeping enterprise which might challenge
new debt.

HPS Financial commitment Partners turned Towergate’s major
shareholder in 2015 following Towergate marketed itself to its senior
secured lenders as aspect of a offer to slash its debt pile.

Madison Dearborn Partners turned the firm’s
next major shareholder very last year.

The two private fairness corporations explained in a statement they would
appear to consolidate the group’s capital framework in the loan
and bond marketplaces, together with as a result of refinancing present debt.
They explained they would give additional particulars of the programs in the 3rd
quarter.

Joining Towergate underneath the new framework would be Autonet,
a van insurance broker, private health care insurance broker Chase
Templeton, and general insurance broker Ryan Direct Team. All
would work independently underneath present management.

A fifth enterprise, Lloyd’s Of London speciality insurance
broker Rate Forbes, would also sign up for the new keeping enterprise,
they added. The new keeping enterprise, known as KIRS, would be
renamed in the 3rd quarter.

KIRS is getting Nevada, the keeping group for Autonet and
Rate Forbes, for 250 million lbs . ($323.twenty five million), the
expenditure groups explained.

Financial commitment corporations KKR and Bain Money are also
minority shareholders in Towergate and are envisioned to stay
invested in the new group, a spokeswoman explained.

The expenditure groups explained John Tiner, Towergate’s chairman,
had been appointed chairman of the new enlarged group with its
chief executive David Ross taking the exact same part at the new
group.

“Present-day announcement demonstrates the remarkable self-assurance
our big shareholders have in the corporations we are bringing
collectively and the chances for even more expansion,” Tiner
explained in the statement.
($1 = .7734 lbs .)
(Editing by Lawrence White, Greg Mahlich)

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