United Trust Bank Announces Minority Investment by Warburg Pincus

12 December 2024

United Trust Bank (UTB), a leading UK specialist bank, has announced that an agreement has been reached between its majority shareholders and Warburg Pincus, the pioneer of private equity global growth investing, whereby Warburg Pincus will acquire a minority equity interest in UTB.

This agreement, which is subject to the relevant regulatory approvals, will support the continuation of UTB’s strong growth and expansion into new products. The investment, which values the banking group at approximately £520 million, is a significant endorsement of UTB’s current strategy and future prospects.

UTB has been successfully building its business and brand for over 20 years with its focus on recruiting the best people, developing its product range and a disciplined approach to growth. Today, UTB has around 60,000 deposit customers and total assets approaching £4 billion. The Bank has dedicated divisions providing development finance, bridging finance, structured finance, asset finance, BTL finance and mortgages. UTB’s reputation for in-depth knowledge combined with commercial awareness and its robust funding model has made it a popular choice for finance brokers, developers and individuals seeking a high quality, bespoke service and a reliable source of finance solutions.

Harley Kagan, Chief Executive Officer of United Trust Bank, commented:

“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 £4 billion 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.”

Mike Thompson, Managing Director, Warburg Pincus, commented:

“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.”

Warburg Pincus was one of the first global private equity firms to invest in Europe in 1983, investing more than $15 billion in over 125 companies across more than 20 European countries. Within the financial services industry globally, Warburg Pincus has invested more than $25 billion across 60 companies, with a particular focus on specialist banking and lending. The firm has a successful track record of investing in capital solutions related transactions historically and recently closed the Warburg Pincus Capital Solutions Founders Fund, backed by over $4.0 billion in commitments.

UTB was advised by Lazard and CMS.