Private equity firm Advent International is to make a £200m investment into insurance intermediary Towergate Partnership.
The deal was tipped at the beginning of the year.
It is conditional on Towergate raising new debt facilities through the bank and bond markets.
The £200m investment and the debt capital raising is expected to be in mid-February.
The aim of the deal is to reduce Towergate’s total borrowings and establish a long-term capital structure on more favourable terms.
It will also provide additional resources to fund future acquisitions.
Towergate chief executive Andy Homer says: “This transaction follows a strong year for Towergate despite the ongoing tough economic conditions.
“We will continue to invest across our business and maintain a strong focus on acquisitions, a strategy which has delivered significant value over the last decade.”
Towergate chairman and founder Peter Cullum says: “This marks an important milestone for Towergate and I am delighted to be working alongside Advent as our new private equity partner.
“Advent’s investment provides real firepower as the group reignites its acquisition programme as part of our ambitious growth strategy.”