Royal Bank of Scotland Sells Its European Private Equity Fund for 400 Million Euros

UK banking group Royal Bank of Scotland is about to announce the sale of European private equity fund or the Dutch pension fund Alpinvest, a transaction valued at approximately 400 million euros, informs Financial Times. 

The deal, which could be announced within weeks, comes in the context in which RBS gate in parallel talks on selling its U.S. private equity fund for 200 million dollars. 

RBS, a company controlled in 70 percent of the British government, trying to sell side activities to strengthen its capital reserves. British bank talks with Spanish banks BBVA and Santander and National Australia Bank in connection with the sale of 318 branches. 

Banks worldwide are trying to get rid of some of their investments in private equity funds, after strengthening regulations increased costs for banks that own such assets. Last month, Merrill Lynch Bank of America announced sales of $ 1.9 billion portfolio of private equity by French company Axa Private Equity. And other major banks, including Lloyds Banking Group and Citigroup, have plans to sign similar deals. 

In March this year, Royal Bank of Scotland announced sale of its factoring division of Germany (RBS Factoring) GE Capital financial services division of U.S. giant General Electric, the transaction is not made public. 

In 2008, RBS has posted the largest loss in history a company in Britain, for 24.1 billion pounds, and several thousand bank employees lost their jobs. Royal Bank of Scotland was saved only by government intervention, informs Agerpres.