Advent acquires pension administrator

Global private equity firm Advent International has acquired Xafinity, a pension services and employee benefits group that handles £2trn each year, from Duke Street for £190m.

With a yearly income of £136m (year ended 31 March 2009), Xafinity was acquired by Duke Street in July 2005 when it backed the £124m management buyout of the firm.

It is responsible for the payment of £11bn a year to British pensioners and is made up of three operating divisions that cover pensions consultancy, private and public sector administration and pension administration systems.

Xafinity’s key markets have grown as a result of new government pension initiatives, changes to regulation as well as the increased focus on the reduction of pension deficits.

Financing for the transaction was provided by a syndicate including Ares Management, Babson Capital, Bank of Ireland, Barclays, Clayon, Lloyds TSB Corporate Markets Acquisition Finance and Royal Bank of Scotland.

Close Brothers provided financial advice to Advent and Weil, Gotshal & Manges acted as legal advisers.

Advent has raised US$24bn in private equity capital and has completed over 250 buyout transactions, valued at approximately US$45bn in 35 countries.