Just Retirement has secured an £18m investment from its majority shareholder Avallux as part of fundraising plans ahead of its planned merger with Partnership.
Last month, Partnership and Just Retirement announced plans to issue new shares in a bid to raise £150m to fund the merger.
Of the £150m total, £60m will cover one-off integration costs and £20m will pay for transaction costs, boosting reserves and product development.
Just Retirement has announced today that Avallux has taken up the bulk of the new shares on offer for £17.9m.
The share deal will mean that Avallux will hold a 48.4 per cent stake in the new enlarged company.
The combined JRP Group is targeting £40m in annual savings.