The investment values UTB at around £520m, backs the continuation of the specialist lender’s “strong and profitable growth” and is a “significant endorsement” of the bank’s success to date and future ambitions.
UTB reported new lending of £1.9bn in 2024, along with profit before tax of £86.4m.
The firm currently has around £4bn in total assets, with divisions focusing on providing development finance, bridging finance, structured finance, asset finance, buy-to-let (BTL) finance and mortgages.
Harley Kagan, UTB’s CEO, said: “I am delighted to have completed this transaction and to welcome Warburg Pincus as a new partner to the business. As well as providing an excellent opportunity for our shareholders, staff and Warburg Pincus, the bank will also benefit from the vast experience they bring to the boardroom as we continue to expand and explore exciting new opportunities in products and markets.
“I look forward to working with Mike Thompson, who led the transaction on behalf of Warburg Pincus and will be joining the board and brings significant sector and M&A expertise.”
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He continued: “I would like to thank everyone who has worked hard to bring this deal to a successful conclusion, and of course the excellent staff of UTB, whose dedication and commitment have helped us to create a highly regarded and successful business. We will work with our partners to continue delivering outstanding and innovative products and services to our customers and to demonstrate our belief that, united, we go further.”
Mike Thompson, managing director at Warburg Pincus, commented: “The completion of our investment in United Trust Bank marks the start of an exciting partnership with Harley and the company in their next phase of growth.
“Warburg Pincus has a nearly 30-year history of investing in the banking sector, having invested over $3.5bn in regulated banking institutions around the world. We look forward to leveraging our experience in the space and supporting the team as they explore new products and markets, while continuing to deliver strong customer service.”
