Bloomberg News reports that Blackstone will pay $434.9m upfront with a deferred payment in the form of a loan note for the Lombard business, according to a statement today from Friends Life. The insurer said it plans to return $446.8m to shareholders through a share buyback.
Blackstone is making the investment through its Tactical Opportunities Group, which invests client money in deals that don’t fit traditional private-equity mandates. Lombard provides wealth planning for high and ultra-high net worth investors, a business that benefited as the number of millionaire households in the world jumped to 16.3m in 2013 from 13.7m in 2012, according to Boston Consulting Group.
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