RFIB Group has restructured its capital base through a management buy-out from retired shareholders and the introduction of FF&P Private Equity (FPE), the private equity division of Fleming Family & Partners, as an independent financial investor.
Following the restructuring, employees will retain a majority stake in the business while FPE will acquire a significant minority shareholding. FF&P Private Equity is also prepared to make further capital resources available to RFIB in order to fund the expansion of the business.
As part of the restructuring, Lord Hodgson of Astley Abbotts, who successfully built up Granville plc, the specialist investment bank, has been asked to join the board post completion as non executive chairman and is investing alongside the existing management.
Lord Hodgson said: “This is an exciting time for RFIB. The pressure for consolidation in the sector continues to increase. We believe this will give us the opportunity to link up with businesses with complementary skills and philosophies. We also know of individuals and teams of experienced brokers who are interested in joining the entrepreneurial environment which exists at RFIB.”
Outgoing chairman and RFIB co-founder Clive Bowring, who will continue as chairman of RFIB Pension Trust, added: “This transaction is an important milestone in RFIB's history. As a member of the team from day one, it is a great pleasure to be able to leave RFIB so well positioned for the future.”
Patrick Holcroft, chief executive, said: “Restructuring RFIB's capital with the backing of a private, entrepreneurial investor and realigning RFIB's ownership amongst existing staff has been a key strategic objective of the Group for some time.
"We are very pleased FPE has decided to support our plans and have been hugely encouraged by the investment of some £2m by many members of RFIB's existing staff. This additional financial commitment, much of which is from our next generation, is a further demonstration of the confidence we all share in the future.”
“We are delighted to be investing alongside the management and employees of RFIB to help accelerate the growth and development of the firm”, commented David Donnelly, chief executive of FF&P Private Equity.