Private equity firm plans Towergate takeover
A US-based private equity firm is reportedly planning £715m debt-for-equity deal to acquire insurance broker Towergate, after previously purchasing some of the company’s senior loans.
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According to a Sunday Times report, $164bn investment firm Apollo has appointed Evercore and Rothschild as joint advisers as it seeks a buyer.
Three other US-based funds previously purchased more than £300m in Towergate loans following the company's drop in profits last month, which saw creditors owed more than £1bn.
Towergate owns advice business Towergate Financial and Paymentshield, which provides insurance products to mortgage brokers.
Earlier this month, Towergate's insurance broker division reported an 18% drop in earnings for the first nine months of 2014, while Paymentshield also reported negative results with a 12% fall in income.
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