Lloyds Banking Group has announced it is to sell a portfolio of private equity-related investments in a deal worth just over £1bn.
The sale to a fund financed by Coller International Partners will involve the portfolio, which has gross assets of £1.1bn, and undrawn commitments of £220m.
Lloyds says the portfolio generated losses of £40m in the year to 31 December.
The deal is expected to result in a pre-tax gain for the group, which will continue to manage the portfolio for a fee of around £10m. The deal is expected to complete during the fourth quarter and is part of Lloyds’ de-risking strategy and reduction of non-core assets.