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Barclays doubles money on sale of UK Preferred Mortgages to Lehman Brothers15/12/2003. Source: AltAssets. 
 Barclays Private Equity has doubled its money on the sale of its majority stake in UK home loans business Preferred Mortgages to Lehman Brothers. Barclays generated a 2.3 times multiple and 40 per cent internal rate of return on the 66 per cent stake it acquired in 2001.
Preferred Mortgages provides a range of mortgage products to applicants who find it difficult to get lending from traditional providers. The firm was formed in 1996 and bought out by its management, backed by Barclays, in 2001.
Owen Clarke of Barclays said: ‘Preferred Mortgages has outstripped its competitors in a rapidly growing mortgage market while maintaining prudent lending criteria throughout. The track record of the business is a testament to the focused and determined management team. The company is well positioned for its next phase of development.’
Lehman Brothers have begun to ratchet up their buy-out activity in the last few weeks and have strongly indicated that European deals will account for a significant proportion of their global private equity business.
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