Clifford Chance has won a role on Carlyle’s exit from the RAC, advising CVC Capital Partners on its partnership with Freshfields client GIC. 

The transaction means CVC and sovereign wealth fund GIC now become co-shareholders in the RAC, after Carlyle parted with almost half its shares in the road assistance provider to GIC last year. 

Clifford Chance partner David Pearson represented CVC Capital Partners in its purchase of Carlyle’s remaining holding in the RAC, whose revenues rose to £498m last year. 

Fellow private equity group Carlyle continued to seek counsel from Linklaters partner Alex Woodward, who was involved in the GIC deal last year, while Travers Smith advised RAC’s management team. 

Travers senior partner Chris Hale worked alongside corporate partner Adam Orr, as RAC’s management held the remaining shares in the company following GIC’s purchase. 

GIC turned to a team from Freshfields Bruckhaus Deringer led by London corporate partner David Higgins, while the fund’s in-house legal team included assistant general counsel Jarlath Pratt. 

The transaction is currently subject to regulatory approval and is expected to complete in early 2016. 

Background to the transaction 

Linklaters and Freshfields took the key roles on Singaporean sovereign wealth fund GIC’s acquisition of a stake in RAC last year. 

The deal came as Linklaters client Carlyle started to sell almost half of its shares in the roadside assistance group to GIC, represented by Freshfields, giving both parties joint control over the business. 

There had been months of deliberation over whether the RAC would sell a significant stake, or float on the stock exchange. 

Clifford Chance was absent from this transaction, despite advising Carlyle on its £1bn acquisition of RAC from Aviva in June 2011. Travers Smith were also involved back then, advising management on the initial buyout of the RAC Group by Carlyle from Aviva.