Private equity business has bought Towergate Financial Group (TFG), which includes mortgage broker John Charcol, for £8.4m.

Towergate indicated last year that it was looking to divest itself of TFG, as it did not see it as core to its business moving forward.

Scott Egan, interim CEO of Towergate, said: “The sale of TFG is further evidence of a commitment to our core strategic focus, which is to build on our market-leading positions and distribution capabilities in SME insurance and specialist personal lines.

“The provision of independent financial and mortgage advice sits outside these markets and has now found a more fitting home with Palatine Private equity.

“We look forward to an ongoing and mutually beneficial relationship with the business post sale, as a distributor of complementary products and advice. Towergate Group is absolutely focused on the opportunities as we continue to revitalise the Group. This action further illustrates the momentum Towergate has gathered following its proposed restructuring.”