Private equity firm BC Partners has bought Foxtons Group, the property company consisting of Foxtons and its mortgage broker Alexander Hill.
A Foxtons spokesman said BC Partners had paid approximately £400 million.
He said that the only change to the management would be the promotion of Michael Brown to chief executive officer where he replaces Jon Hunt.
Hunt founded the company in 1981. A report in the Financial Times said Hunt will receive £388 million for his 97% UK stake but will retain a majority stake in the company’s fledgling US operations.
BC Partners beat TA Associates and 3i in bidding process that lasted six months. The BC funds came from BC Partners latest fund.
This is the second large UK property company deal this year. On 2 May buy-out firm Apollo purchased property business Countrywide for £1.1 billion.
Foxtons were advised by Credit Suisse and Ashursts and BC Partners by Merrill Lynch.
The transaction is subject to regulatory approval expected within six weeks.