United Trust Bank (UTB) has reached an agreement between its majority shareholders and Warburg Pincus, a global private equity firm, whereby Warburg Pincus will acquire a minority equity interest in UTB.
The agreement, subject to regulatory approvals, will support the continuation of UTB’s growth and expansion into new products.
The investment values the banking group at approximately £520m.
Warburg Pincus has invested more than $25bn across 60 companies, with a particular focus on specialist banking and lending.
The firm has a track record of investing in capital solutions related transactions historically, and recently closed the Warburg Pincus Capital Solutions Founders Fund, backed by over $4.0bn in commitments.
Harley Kagan, chief executive officer of United Trust Bank, said: “This is an exciting milestone for UTB and an excellent opportunity for our staff, shareholders and for Warburg Pincus.
“I am delighted that Warburg Pincus will be joining us as a new partner to help accelerate our growth and provide support and experience as the group heads for a £4bn balance sheet and explores exciting new products and markets in the future.
“It just remains for me to say that the growth story over the last 20 years would not have been achievable without the exceptional UTB staff who work carefully every day to build the Bank and deliver outstanding products and services to our customers, and for that we wish to sincerely thank them. United, we really do go further.”
Mike Thompson, managing director of Warburg Pincus, added: “We are delighted to partner with United Trust Bank as an investor and a strategic partner.
“UTB has established itself as a market leader in the UK, with an impressive track record of growth and innovation.
“The Bank’s strong management team, customer-centric approach, and focus on specialty lending solutions are key drivers of its success.
“We look forward to working closely with Harley and his team to support the Bank’s continued growth and leveraging the expertise of our Financial Services and Capital Solutions teams to help the company seize new opportunities in the UK market.”
