After the reversal of the related available-for-sale reserve, the transaction is expected to result in a pre-tax gain for the Group. Following the sale, the Group will continue to manage the fund in return for a management fee, which is likely to be less than £10 million per annum. The sale proceeds will be used for general corporate purposes.
The Portfolio generated losses of £40 million in the year to 31 December 2011. This transaction is in line with the Group’s strategy of de-risking its balance sheet and reducing its non-core assets. The transaction is subject to certain conditions, including obtaining the approval of the relevant general partners, and is expected to complete in the first quarter of 2013.
Notes: Figures may vary depending on drawdowns, distributions, valuation adjustments and exchange rate movements until closing.