Lloyds sells private equity investments for £1.05bn
Coller is buying the portfolio for £1.03 billion in cash. The deal includes the transfer of undrawn commitments that are expected to be worth £220 million at completion.
Lloyds, in which the taxpayer holds a 40 per cent stake, said the transaction is expected to boost its pre-tax profit. Following the sale, the bank said it will continue to manage the fund in return for a management fee, which is likely to be less than £10 million each year.
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Hide AdThe bank shed £53 billion worth of non-core assets from its balance sheet in 2011 and over £23 billion of non-core assets so far this year.
It is looking to reduce its loan book, cut costs and rein in bad debt as part of a recovery plan instigated by chief executive Antonio Horta-Osorio.
The transaction is due to complete in the fourth quarter.