Swiss Re is selling its wholly owned investment banking subsidiary, Fox-Pitt, Kelton, to a new company formed by FPK management and private equity firm J.C. Flowers & Co.
Terms of the deal were not disclosed, but Swiss Re said it would retain a stake in the company, which specializes in the insurance and banking sectors.
“We're pleased with the new ownership for Fox-Pitt, Kelton,” Swiss Re chief executive Jacques Aigrain, said in a statement. “FPK has been instrumental in helping Swiss Re to build our capital markets capabilities. However, we believe this move better positions FPK for the future. With Swiss Re maintaining a stake in the new company, we can participate in its future success.”
The transaction, which is subject to usual regulatory approvals, is expected to close during the first half of 2006. In addition to the transfer of the FPK group of companies, it is expected that employees working under the FPK brand plus a number of additional staff from Swiss Re's Capital Management and Advisory team will become part of the new organisation.
