Lloyds Sells $1.6 Billion Private-Equity Assets to Coller
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Lloyds Banking Group Plc, the U.K.’s second-biggest state-backed lender, agreed to sell private equity-related investments for 1.03 billion pounds ($1.6 billion) as it shrinks following its 2008 bailout.
The sale of the portfolio, which had losses of 40 million pounds in 2011, to a fund financed by British private-equity investor Coller Capital Ltd., will result in a pretax gain for Lloyds after it reverses a provision, the London-based bank said in a statement today. The group will continue to manage the fund in exchange for a fee, probably less than 10 million pounds a year, it said.