Lloyds under the guidance of its chief executive Antonio Horta-Osorio is following a strategy to get rid of non-core assets, which is of no use for the bank and under this plan, the UK lender aims to reduce such assets to £47bn by the end of 2014.
Coller Capital, which is headed by Jeremy Coller is a private equity firm, which primarily deals with secondary private-equities.
During the financial upsurge of 2008, the UK government pumped billion of pounds in Lloyds, consequently got 40% stake in the bank. The bank has to repay the UK government aid and it plans to get adequate capital by selling such assets.
According to the bank’s records, during the last two years, it offloaded more than £77bn of non-core assets.
As per the £1.03bn deal, Lloyds has sold its equities at little discount to the net asset value in blue-chip European buyout groups including Cinven and CVC Capital Partners.
Unlike most other investment vehicles, such as hedge funds, private equity funds are closed commitments running for about ten years, meaning that investors looking to exit early must find buyers to take over their stakes.
Campbell Lutyens advised the UK bank on the disposal of the assets.
