Lloyds Banking Group has agreed to sell a portfolio of 40 private equity investments in its Bank of Scotland Integrated Finance (BOSIF) business to a new joint venture called Cavendish Square Partners, majority-owned by private equity investor Coller Capital, for GBP332m.
The new joint venture will be majority owned (approximately 70%) by Coller Capital, with Lloyds Banking Group owning a stake of approximately 30%.
This transaction is in line with the Lloyds Banking Group’s strategy of divesting assets which are not core to its strategy and over the last 12 months the group has now sold six businesses, raising over GBP750m.
Coller Capital has decided to retain the existing BOSIF management team. It will transfer under TUPE into a newly formed management vehicle responsible for the day-to-day management of the portfolio.
Truett Tate, group executive director for wholesale banking at Lloyds, said: “Through this transaction, we are crystallizing value in these investments whilst retaining an interest in the investee companies with which we have had positive relationships for several years. This deal will ensure that we share in any future upside of our investments.
“We believe that the deal with Coller, a leading private equity investor, provides the investee companies with stability and support over the period ahead. This sale is part of our wider wholesale banking strategy of focusing on our core relationship based businesses.”