United Trust Bank announces investment by Warburg Pincus

United Trust Bank (UTB), a UK-based specialist lender, has announced a landmark agreement with global private equity powerhouse Warburg Pincus, under which the latter will acquire a minority equity stake in UTB. The transaction values UTB at approximately £520 million, marking a significant milestone in the bank’s growth story.

The deal, subject to regulatory approvals, is set to provide UTB with a robust capital boost, enabling the bank to accelerate its expansion plans, explore new products, and solidify its position in the UK’s specialist lending market.

UTB has built a strong reputation over its two-decade history by focusing on disciplined growth, innovative financial solutions, and a customer-centric approach. Today, the bank boasts approximately 60,000 deposit customers and total assets nearing £4 billion, with specialist divisions in asset finance, development finance, bridging finance, structured finance, buy-to-let (BTL) finance, and mortgages.

The investment not only highlights the bank’s track record but also underscores its prospects for scaling its business.

Harley Kagan, Chief Executive Officer of UTB, expressed optimism about the partnership, stating:

“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.”

Warburg Pincus brings decades of expertise in financial services and specialist lending, having invested over $25 billion in 60 companies in the sector globally. The firm’s focus on specialty finance aligns with UTB’s market positioning.

Mike Thompson, Managing Director at 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.”

This investment represents one of the most noteworthy transactions in the specialist lending market in recent years, both in terms of scale and strategic importance. It not only enhances UTB’s financial standing but also reinforces its reputation within the industry.

The bank was advised on the deal by Lazard and CMS, while Warburg Pincus continues to expand its presence in Europe. Recent notable investments by Warburg include acquisitions in the insurance and telecommunications sectors.

This strategic partnership represents a huge step forward for UTB providing a capital boost that is expected to unlock significant growth opportunities for the bank.