Coller Capital acquires Abbey National's private equity business

10 March 2004

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Coller Capital has paid in the region of Â£300m for the bulk of Abbey National's private equity business. Abbey has agreed to sell positions in 41 private equity funds, along with direct holdings in 16 private companies. The transaction represents the largest secondary private equity transaction by a single buyer. Subject to approval, the holdings will transfer to Coller Capital's largest global secondaries fund, the $2.6bn Coller International Partners IV. Abbey's original commitment to the funds involved was Â£748m, of which Â£162m represents funding commitments as yet undrawn.Subject to the approval of the 41 fundsâ€™ general partners, Abbey expects the transfer of its interests to Coller Capital to be completed within the next few months. The sale price represents a Â£59m discount to the holding value of these funds in Abbey's balance sheet as at 30 September 2003. The purchase consideration is cash plus a secured loan note with Â£165m principal amount. The portfolio includes positions in funds managed by 3i, Duke Street Capital, Intermediate Capital Group, Montagu Private Equity and Warburg Pincus.Abbey is planning to have realised all investments in its non-core private equity business by the end of 2004. The deal does not include the disposal of the E115m commitment to mezzanine provider Hutton Collins' debut mezzanine fund, which it made in May 2002. The acquired Abbey portfolio has a diverse selection of 180 investee companies across all sectors of the global economy. 75% of the acquired assets come from Europe and 25% from the US. While the split in terms of investment is 70% buyout and 30% venture. The current deal means that Coller has invested just under half of its Coller International Partners IV fund, which closed last October on $2.6bn.