Fox-Pitt, Kelton, the financial services investment bank, today reached an agreement for a management buyout from parent Swiss Re in which affiliates of private equity firm JC Flowers will be the major shareholders.

Under the deal, management. led by chief executive Giles Fitzpatrick, and employees of Fox-Pitt will acquire a "significant stake" in the business, while Swiss Re will retain an interest in the company, the company said in a statement.