STEVE Groves, the 38-year-old chief executive of Partnership Assurance, will receive around £12m in cash this morning as his company completes its IPO ahead of schedule and at the top end of its price range.
Last night a person with knowledge of the deal told City A.M. that Partnership has hit a price of 385p a share after setting an initial range of 325p-400p. This means the company is valued at around £1.55bn.
Strong demand enabled the specialist life insurer to bring forward its market debut by more than a week to today. The company sells more generous annuities to members of the public with reduced life expectancy, such as smokers or people with heart disease.
Groves is selling a quarter of his five per cent stake in the business and his remaining shares will be valued at around £60m.
He will be celebrating with his management team, who collectively own a further 15 per cent of the business. Cinven, a private equity business, control the remaining 80 per cent.
Cinven bought Partnership in June 2008 for around €200m (£172m), meaning they have increased the company’s value by 800 per cent in the last five years.