Partners Life founder and managing director Naomi Ballantyne
Partners Life founder and managing director Naomi Ballantyne said the investment would meet the firm’s needs for medium-term capital and it would not need to tap equity markets for more money.
“The $200 million is all new capital, meaning existing shareholders will remain co-invested alongside Blackstone,” she said.
“We intend to go for a public listing when market conditions are right, and the support of Blackstone up to and throughout a future listing process will allow the company to solidify its market leading position in New Zealand.”
Partners Life said the money would buy Blackstone a “significant minority shareholding.”
Blackstone’s investment is being made through its Tactical Opportunities unit, which aims to “focus on deep value opportunities that may be overlooked by less nimble market participants.”
In a statement, Blackstone senior managing director Kishore Moorjani said his firm was impressed with growth achieved by the management team at Partners Life and by its customer-centric approach.
“Given Blackstone’s experience in the insurance sector, we look forward to supporting the company in achieving its strategic objectives and maximising value for all shareholders.”
Before Blackstone’s investment Partners Life was owned by a range of local investors, including Ms Ballantyne and investment firms Maui Capital, Rangatira and Waterman Capital.
In the year to March 2015, Partners Life reported net revenue of $112.7 million and net profit of $18.5 million.
The company said today it has close to 130,000 customers.
Partners Life was advised on the deal by First NZ Capital, Chapman Tripp and Deloitte.