3i Group has agreed to divest majority stake in its Bestinvest, a UK-based wealth manager and online investment broker, to private equity firm Permira for an undisclosed sum.
The sale of 3i’s majority stake in Bestinvest is expected to generate total proceeds of approximately £45 million.
3i will receive proceeds of around £25 million, which it says is a £19 million uplift to the wealth manager’s June 2013 valuation.
The transaction is expected to complete in the first quarter of 2014.
The private equity group bought a stake in Bestinvest in August 2007 and claims credit for bringing in chief executive Peter Hall and chairman Mike Covell as part of a wider management restructure.
Ian Lobley, partner at 3i, said: "During 3i’s investment, Bestinvest has been transformed as a business and continued to grow, despite some challenging times in the financial markets.
"As Bestinvest enters a new phase of development we thought now was the time for us to realize the value created with the management team and introduce a new partner to support the company’s future growth," Lobley added.