United Trust Bank (UTB) has confirmed the completion of a strategic transaction in which Warburg Pincus has acquired a minority equity interest in the business, valuing the bank at approximately £520m.
The investment is seen as a significant endorsement of UTB’s performance and future potential. The bank recently reported a strong set of results for 2024, with operating income rising to £165m, profit before tax of £86.4m, new lending reaching £1.9bn, and return on equity exceeding 20%. In February, UTB further strengthened its capital position by issuing a £50m Additional Tier 1 capital instrument to institutional investors.
Harley Kagan, chief executive officer of United Trust Bank, said: “I am delighted to have completed this transaction and to welcome Warburg Pincus as a new partner to the business. As well as providing an excellent opportunity for our shareholders, staff and Warburg Pincus, the Bank will also benefit from the vast experience they bring to the boardroom as we continue to expand and explore exciting new opportunities in products and markets. I look forward to working with Mike Thompson, who led the transaction on behalf of Warburg Pincus, and will be joining the Board and brings significant sector and M&A expertise.
“I would like to thank everyone who has worked hard to bring this deal to a successful conclusion, and of course the excellent staff of UTB whose dedication and commitment have helped us to create a highly regarded and successful business. We will work with our partners to continue delivering outstanding and innovative products and services to our customers and to demonstrate our belief that united, we go further.”
Mike Thompson, managing director at Warburg Pincus, said: “The completion of our investment in United Trust Bank marks the start of an exciting partnership with Harley and the company in their next phase of growth. Warburg Pincus has a nearly 30-year history of investing in the banking sector, having invested over $3.5 billion in regulated banking institutions around the world. We look forward to leveraging our experience in the space and supporting the team as they explore new products and markets, while continuing to deliver strong customer service.”
UTB, which has been operating for more than two decades, provides a range of specialist lending services including development finance, bridging finance, structured finance, asset finance, buy-to-let and residential mortgages. It currently serves around 60,000 deposit customers and has total assets approaching £4bn.
Advisers on the deal included Lazard and CMS.
