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Lloyds offloads private equity portfolio 15 August 2012

Lloyds Banking Group has sold a £1 billion private equity investment portfolio to Coller Capital, the company has confirmed.

The transaction means that the bank received around 100p in the £1 for the portfolio and it will now receive a management fee for continuing to manage the investments.

In a statement on the London Stock Exchange, the bank said the portfolio had generated losses of £40 million in the year to 31 December 2011, so news of the sale is likely to be well-received with taxpayers.

It added: “The transaction is inline with the group’s strategy of de-risking its balance sheet and reducing its non-core assets.

“After the reversal of the related available-for-sale reserve, the transaction is expected to result in a pre-tax gain for the group. The sale proceeds will be used for general corporate purposes.”

Lloyds Banking Group’s chief executive, Antonio Horta-Osorio has been pushing for the bank to relinquish non-core assets including private equity and real estate investments since taking the top job.

Coller Capital claims to run the world’s largest investment team dedicated to the private equity secondary market, with offices in London, New York and Hong Kong.

The group specialises in providing an escape route to businesses seeking an early exit from their private equity investments.

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