Alantra advised Palatine Private Equity on its £14m investment in support of the management buy-out (MBO) of the mortgage broking business, John Charcol, and the financial planning business of the Towergate Group

Feb 2015

Buy-side advisory

Value £14 million

Alantra has advised Palatine Private Equity on its £14m investment in support of the management buy-out (MBO) of the mortgage broking business, John Charcol, and the financial planning business of the Towergate Group. This was a complex deal carving out two directly FCA regulated businesses, negotiating a detailed transitional services agreement and planning for the split into two separately run businesses.

Palatine has backed Ian Darby and the existing management team of both businesses. Ian has joined as full time Executive Chairman of the businesses and will work alongside Warren Page (Financial Planning) and Walter Avrili (John Charcol). The John Charcol team will also be joined by Simon Knight as CEO.

Palatine and management have invested £14 million in the transaction. In addition to funding the initial purchase price, these funds represent significant additional capital for the financial separation of the two businesses, investment in growth and the improvement of systems which will allow the management teams to continue to deliver high quality service levels to their private and corporate clients. As part of the transition from Towergate Group, management plan to invest heavily in new IT and back office systems and as well as bolstering existing routes to market and building new ones.