Lloyds sells SWIP to Aberdeen Asset Management

The banking group is selling SWIP for an initial consideration of 132 million shares in Aberdeen, priced at somewhere between £3.2 and £4.2 each. The ultimate price-per-unit for the sale will be determined by Aberdeen's volume-weighted average share price in the five trading days prior to completion.

Based on Aberdeen's closing price of £4.27 per share on 15 November 2013, the value of Lloyds' stake in Aberdeen from the sale of SWIP currently sits at around £560m.

A further £100m will also be payable in cash over a five-year period, according to Lloyds, depending on growth in Aberdeen's business from its new strategic relationship with the banking group. Aberdeen is to manage assets on a long-term basis on behalf of Lloyds as part of the transaction.

The acquisition of SWIP by Aberdeen will create Europe's largest listed asset management business with more than £336bn under management, according to SWIP.

SWIP's private equity unit is part of its UK institutional investor division, and its private equity team has £4.1bn in assets under management across 300 investments. The division is primarily a fund-of-funds manager and invests in equity and mezzanine funds, as well as in the secondaries market. SWIP will also co-invest directly in businesses alongside private equity firms.

Graham McDonald is SWIP's director of private equity, while William Gilmore is head of investments in private equity funds and Colin Burrow is the firm's head of investments in co-investments and private debt.

Completion of the sale to Aberdeen is expected to happen by the end of Q1 2014, subject to regulatory approval.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland
• Industry
• LPs
• Lloyds
• United Kingdom