RBS said to sell stake in private-equity arm to Adams Street

Royal Bank of Scotland Group PLC agreed to sell its minority stake in a private-equity unit to an investor group led by buyout firm Adams Street Partners LLC, according to two people with knowledge of the matter. More

To continue reading this article, please do one of the following.



banking

RBS said to sell stake in private-equity arm to Adams Street

Posted 5/29/14

LONDON – Royal Bank of Scotland Group PLC agreed to sell its minority stake in a private-equity unit to an investor group led by buyout firm Adams Street Partners LLC, according to two people with knowledge of the matter.

The Edinburgh-based bank agreed to sell its stake in RBS Special Opportunities Fund last month in a deal valued at about 100 million pounds ($167 million), said the people, who asked not to be identified because the talks are private. The investor group may provide new capital for transactions, the people said.

RBS, Britain’s largest state-owned lender, is the latest bank to divest private-equity holdings to focus on its main businesses as regulators press lenders to bolster their capital. Credit Suisse Group AG transferred its buyout unit, DLJ Merchant Banking Partners, to the fund’s managers last year, while HSBC Holdings Plc hired Campbell Lutyens & Co. to look at sale options for its direct investment unit in February.

Spokesmen for RBS and Adams Street, which is based in Chicago, declined to comment.

The bank began the process of spinning off the private-equity fund last year. The unit, which raised 1.1 billion pounds ($1.8 billion) from investors in 2007, takes both debt and equity stakes in U.K. companies, according to its website, and is majority owned by its managers.

Erno Laszlo

The Special Opportunities Fund is currently selling one of its companies, U.K. foreign-exchange provider TTT Moneycorp Ltd., with both JC Flowers & Co. and Warburg Pincus LLC among the bidders, four people with knowledge of the matter said earlier this month.

The fund also sold shares of U.K. debt-recovery business Arrow Global Group PLC on the London Stock Exchange in October, valuing the company at about 360 million pounds ($602 million). Other investments include U.S. skincare brand Erno Laszlo Inc.

RBS, which posted its largest annual loss since 2008 last year, is being weighed down by legal bills and risky assets five years after receiving the biggest bank bailout in history. The company is scaling back its investment-banking operation to focus on U.K. consumers and businesses.

On Wednesday, the company said it plans to cut hundreds of U.S. jobs while shrinking its mortgage-trading business before stiffer capital rules are implemented.

Calendar
PBN Hosted
Events

Please join PBN on September 10th for the 3rd Annual Fastest Growing & Innovative Companies program at Rosecliff Mansion in Newport. Seating is limited so be sure to register early.
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement