Lloyds Banking Group has agreed to the sale of a portfolio of private equity-related investments with gross assets of approximately £1,050 million and the transfer of approximately £220 million of undrawn commitments to Coller Capital for £1,030 million in cash.
Coller Capital will fund the purchase through its sixth investment fund, Coller International Partners VI. Fund 6 had a final close in July with commitments of $5.5 billion and seeks to acquire private equity portfolios, positions in existing private equity funds and interests in privately-held companies. Fund 6 makes individual investments ranging in size from $1 million to $1 billion.
Following the sale, Lloyds Banking Group will continue to manage the fund in return for a management fee, which is likely to be less than £10 million per year. The portfolio of private equity-related investments generated losses of £40 million in the year to 31 December 2011
Coller Capital was founded in 1990 and has offices in New York, London, and Hong Kong (www.collercapital.com).