United Trust Bank (UTB) has agreed to private equity investment firm Warburg Pincus acquiring a minority stake in the specialist lender.
The agreement is subject to regulatory approval and will support UTB’s growth and expansion into new products.
The lender said the investment, which is valued at around £520m, was a “significant endorsement” of its current strategy and future prospects.
Harley Kagan (pictured), chief executive of UTB, 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.”
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Mike Thompson, managing director at 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.”
UTB recently launched its asset finance proposition in Scotland, hiring Eleanor Russell-Blackburn as a business development manager (BDM) to lead broker support in the country.
