5 July 2010
Lloyds Banking Group plc is selling 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 LLP. The new joint venture will be majority owned (approximately 70%) by Coller Capital, a global leader in private equity secondary transactions, with Lloyds Banking Group owning a stake of approximately 30%.
The total cash consideration for Coller Capital’s majority stake is £332 million. This values the portfolio at approximately £480 million, which is a small premium to current book value. The Group held a competitive tender process before selecting Coller as its preferred bidder. The companies in the portfolio are UK headquartered trading businesses across a range of industry sectors.
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. This will ensure continuity of management of the business.
The transaction is subject to certain conditions including regulatory approval, certain anti-trust approvals, the transfer of the underlying investments to the joint venture and the TUPE transfer of the existing BOSIF management team to a newly formed management vehicle. It is expected to complete in the third quarter of 2010.
Jeremy Coller, Chief Investment Officer of Coller Capital, said, "We are delighted to be partnering with Lloyds Banking Group in this joint venture, one of many complex transactions we have undertaken with banks over the years. Our aim now, working closely with LBG, will be to ensure the BOSIF companies have access to the resources they need to reach their full potential."