Two US private equity firms are close to agreeing a deal to buy Investec’s UK intermediary mortgage arm Kensington Mortgages.
Sky News reports Blackstone and TPG could complete a deal as early as this week for the specialist lender, which was acquired by Investec for £283m in May 2007. The size of the deal is not yet known.
If the deal is completed, Kensington will be taken over by Blackstone’s tactical opportunities unit and TPG’s special situations and credit platform.
The firms are expected to put in a place a new management team to run Kensington, although Sky News says any agreement is yet to complete and talks could still break down.
Investec announced it was looking to offload the Kensington Mortgages business in February, after receiving “certain expressions of interest”.
Kensington, Blackstone and TPG declined to comment.