Click here for printer friendly page

HSBC finalises MBO of private equity arm, reducing stake from 100 per cent to 19.9 per cent

HSBC Private Equity has joined the growing list of captive funds gaining independence after the announcement by HSBC Holdings that it has finalised the MBO of its private equity business.

HSBC did not disclose the transaction size, although in an agreement reached in August it was said the business would be sold for £50m.

HSBC has reduced its shareholding from 100 per cent to 19.9 per cent, with the management taking an 80.1 per cent stake.

The newly independent firm will take the name Montagu Private Equity Ltd, and in a statement HSBC said that it would remain its principal vehicle for investing in European private equity opportunities.

HSBC said in a statement that the decision to become a minority shareholder would ensure that both parties would ‘obtain greater flexibility in the future development of their respective businesses'.

The newly named Montagu Private Equity team recently completed a fundraising of £1.2bn.

Copyright © 2003 AltAssets