The management team of protection and general insurance provider Paymentshield have completed a management buyout of the company's founder shareholders.
Former Bankhall commercial director Stuart Pender is joining Paymentshield to lead the buyout team as chief executive of the holding company.
The buyout team also includes marketing director Gareth Riding, chief executive Paul Evans and managing director Graham Boulger.
Founder shareholders Richard Riding and Patricia Cottrell, who are approaching retirement will have less day-to-day involvement in the business but Riding will act as strategic adviser to the new board.
An integrated debt and equity package was provided by Bank of Scotland Corporate to facilitate the deal, with private equity being raised by the management team.
Paymentshield says being such a big privately-owned firm caused speculation about a possible institutional sale but it believed it was important to maintain its independence.
It says business will continue as usual for all its staff and its strategic alliance with Bankhall is unaffected.
Riding says: “We have worked hard to develop a succession plan and operational management team that can sustain the ethos and dedication that myself and Pat contributed to Paymentshield since we founded the business in 1992.”
Bank of Scotland Integrated Finance director Frank Summers says: “Paymentshield enjoys a unique position in the mortgage intermediary sector and we look forward to working with the management team.”