Clifford Chance (CC) has picked up its first significant deal for Prudential Capital Group in the UK government’s £11.8bn sale of buy-to-let mortgages from failed lender Bradford & Bingley.
Slaughter and May, Allen & Overy (A&O) and CC all picked up advisory roles on the disposal of loans purchased at the height of the financial crisis.
Slaughters advised Treasury entity UK Asset Resolution (UKAR) and Bradford & Bingley, with a team led by finance partner Guy O’Keefe and corporate partner Craig Cleaver.
Cleary Gottlieb Steen & Hamilton was US counsel, advising UKAR alongside Slaughters, with a team led by international capital markets partner Pierre-Marie Boury in London.
A&O and CC acted for the buyers, The Blackstone Group and Prudential, respectively. A&O partners Angela Clist, Charles Yorke and Justin Cooke advised Blackstone, while CC’s team was led by finance partner Maggie Zhao alongside M&A partner Hilary Evenett.
Zhao said: ‘This is the first significant transaction we have done for Prudential Capital. This is also one of the first transactions Prudential Capital put together to implement its pan-European portfolio acquisition strategy, competing directly with traditional private equity houses and asset managers in this market.
‘To our knowledge, it is the first large-scale UK portfolio acquisition won by an insurance company through a competitive bidding process. We are already seeing an increased level of activity from a number of insurance companies, or funds sponsored by insurance companies, in the European portfolio disposal funding space. Direct investment in portfolios is a natural progression and we believe this trend will continue.’
The government took control of the failed bank’s £50bn loan book back in 2008, while Bradford & Bingley’s £20bn savings unit and branches were purchased by Santander.
Slaughters also advised UKAR in 2008 when a large proportion of Bradford & Bingley’s portfolio was rescued, while Cleary and Linklaters advised TPG Capital on its acquisition during Bradford & Bingley’s collapse.
madeleine.farman@legalease.co.uk