Lloyds Banking Group has sold over £1bn (€1.3bn) worth of private equity investments to Coller Capital, a month after the secondary specialist closed its latest flagship fund.
The deal sees 71 of the tax-payer owned bank's investments, inherited from its 2008 takeover of HBoS, sold for approximately £1,050m. The price is thought to be close to the assets' book value.
The deal comes less than a month after Coller reached a $5.5bn final close on its flagship fund, a sign of the secondaries market's current prosperity, which this year is expected to collectively raise a record-shattering $26bn, according to placement agent Triago.
The deal comes as part of chief executive Antonio Horta-Osorio's current strategy of stripping the company's balance sheet of non-core assets, after its 2008 takeover of HBoS left it needing a government bailout. As a result the taxpayer currently owns 40 per cent of Lloyds.
In 2011 Lloyds sold £56bn of non-core assets and Horta-Osorio intends to complete £47bn worth of similar sales by the end of 2014 in order to comply with tighter banking regulations.