United Trust Bank Secures Minority Investment from Warburg Pincus
Deal News | Dec 12, 2024 | Warburg Pincus
United Trust Bank (UTB), a prominent UK specialist bank, has entered a strategic agreement with Warburg Pincus, a global leader in private equity investing, to acquire a minority stake in the bank. This investment, contingent on regulatory approval, aims to bolster UTB's growth strategy and facilitate its expansion into new product areas. The bank, valued at approximately £520 million, expects that the partnership with Warburg Pincus will enhance its existing strengths, as it already manages around £4 billion in total assets and serves 60,000 deposit customers. UTB's strategic focus on niche services like development finance and asset finance has positioned it as a leader in the UK market. With Warburg Pincus's record of successful financial services investments and $4 billion recently raised in its Capital Solutions Fund, the firm is well placed to support UTB going forward. LaoZard and CMS provided advisory services to UTB in this transaction.
Sectors
- Financial Services
- Private Equity
- Specialist Banking
Geography
- United Kingdom – United Trust Bank is a UK-based bank, and the article focuses on its investment agreement with Warburg Pincus, impacting the UK market.
- Europe – Warburg Pincus has a significant history of investments in the European financial services sector, pertinent to the context of the article.
Industry
- Financial Services – The article discusses a minority investment in United Trust Bank, a specialist financial services provider, by Warburg Pincus, a private equity firm.
- Private Equity – Warburg Pincus, a private equity firm, is acquiring a minority interest in United Trust Bank, highlighting its activity in the investment sector.
- Specialist Banking – UTB operates in the specialist banking industry, offering secured funding solutions across multiple finance divisions, crucial to the deal.
Financials
- £520 million – Valuation of United Trust Bank in the investment agreement with Warburg Pincus.
- $4 billion – Amount committed to the Warburg Pincus Capital Solutions Founders Fund, highlighting the firm's financial capacity.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| United Trust Bank | Target Company | Company | A UK specialist bank offering secured funding solutions, targeted for minority investment by Warburg Pincus. |
| Warburg Pincus | Bidding Company (Investor) | Company | A leading private equity firm investing in a minority stake in United Trust Bank. |
| Lazard | Financial Advisor | Company | Provided financial advisory services to United Trust Bank for the transaction. |
| CMS | Legal Advisor | Company | Provided legal advisory services to United Trust Bank for the transaction. |
| Harley Kagan | Chief Executive Officer | People | CEO of United Trust Bank, commenting on the strategic partnership with Warburg Pincus. |
| Mike Thompson | Managing Director | People | Managing Director at Warburg Pincus, expressing enthusiasm about the partnership with United Trust Bank. |