United Trust Bank and Warburg Pincus LLC complete minority investment transaction
The majority shareholders of United Trust Bank (UTB), a leading UK specialist bank, and Warburg Pincus LLC have successfully completed a transaction in which Warburg Pincus has acquired a minority equity interest in UTB.
This investment, which values the banking group at approximately £520m, supports the continuation of UTB’s strong and profitable growth and is a significant endorsement of the Bank’s success to date and future ambitions.
UTB recently published its Annual Report and Accounts for 2024 which showed increased operating income of £165m, profits before tax of £86.4m, growth in new lending to £1.9bn, and an ROE of over 20%. In February 2025, UTB issued a £50m Additional Tier 1 capital instrument to a pool of institutional investors, thereby demonstrating its ongoing support from capital markets.
UTB has been successfully building its business and brand for over 20 years with its focus on recruiting the best people, developing its product range and a disciplined approach to growth. Today, UTB has around 60,000 deposit customers and total assets approaching £4bn. The Bank has dedicated divisions providing development finance, bridging finance, structured finance, asset finance, BTL finance and mortgages. UTB’s reputation for in-depth knowledge combined with commercial awareness and its robust funding model has made it a popular choice for finance brokers, developers and individuals seeking a high quality, bespoke service and a reliable source of finance solutions.
Harley Kagan, chief executive officer of United Trust Bank, commented: “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.
“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, 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.”
Warburg Pincus was one of the first global private equity firms to invest in Europe in 1983, investing more than $15bn in over 125 companies across more than 20 European countries. Within the financial services industry globally, Warburg Pincus has invested more than $25bn across 160 companies, with a particular focus on specialist banking and lending. The firm has a successful track record of investing in capital solutions related transactions historically and recently closed the Warburg Pincus Capital Solutions Founders Fund, backed by over $4.0bn in commitments.
UTB was advised by Lazard and CMS.