Electra Partners today announces that it has invested £30 million in Peter Wood's buyout of esure from Lloyds Banking Group.
Earlier today, Peter Wood, Chairman and CEO of esure, and the management team of esure announced the purchase of Lloyds Banking Group's 70% stake in the company.
A new company, esure Group Holdings Ltd, representing Peter Wood, other management shareholders and new external investors, has bought the shareholding in esure that was inherited by Lloyds Banking Group after its acquisition of HBOS plc
The cash consideration for the deal is slightly in excess of esure's book value in Lloyds Banking Group's accounts of £185million.
Funding for the buyout was provided through Tosca Penta Investments LP, a new private equity vehicle raised and managed by Penta Capital.
Tim Syder, Deputy Managing Partner of Electra Partners, commented: "We are delighted to be involved in this deal; esure has a great brand, is managed by an entrepreneur with a fantastic track record and it is a good time in the industry cycle to be investing."
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC ("Electra").