HSBC sells remaining stake in Montagu to management

HSBC has sold its remaining 19.9% stake in Montagu Private Equity nine years after the mid-market buyout group spun out from the bank.

Montagu Private Equity’s management team has acquired the 19.9 percent held by the firm’s former parent HSBC Bank in a deal which sees it become wholly independent nine years after its spinout.

Montagu's team spun out from HSBC in 2003, acquiring 80.1 percent of the general partnership from the bank.

The management team acquired the stake through vehicle MLLP Holdings. The purchase price was not disclosed.

In a statement, HSBC said MLLP would acquire consolidated gross assets of about £5.7 million on completion of the deal.

The deal comes as banks seek to offload private equity assets in response to regulation – the Volcker Rule in the US and Basel III in Europe – designed to reduce their exposure to assets perceived as being at the risky end of the spectrum.

Montagu currently has assets under management of about €4.7 billion.

HSBC is also attempting to offload its retail banking and wealth management business in Korea to The Korea Development Bank, it said in a separate statement on Tuesday.