Investment agreement marks new chapter for specialist bank
United Trust Bank (UTB) has completed a minority investment transaction with Warburg Pincus LLC. Warburg Pincus, which has been investing in European businesses since 1983, has acquired a minority equity stake in UTB, in a deal valuing the bank at approximately £520 million.
The transaction follows UTB’s recently published financial results, which reported an operating income of £165 million and pre-tax profits of £86.4 million for 2024. New lending increased to £1.9 billion, with a return on equity exceeding 20%. In early 2025, UTB issued a £50 million Additional Tier 1 capital instrument to institutional investors.
UTB has operated for more than 20 years and provides financial services including development finance, bridging finance, structured finance, asset finance, buy-to-let finance, and mortgages. The bank serves approximately 60,000 deposit customers and manages total assets nearing £4 billion.
“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,” said Harley Kagan (pictured), chief executive officer of UTB.
With the completion of the transaction, Mike Thompson, who led the transaction on behalf of Warburg Pincus, will be joining the UTB Board.
“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 $3.5 billion in regulated banking institutions around the world,” said Thompson.
Warburg Pincus has committed over $15 billion to more than 125 companies across 20 countries and has invested over $25 billion globally in 160 financial services companies, with a focus on specialist banking and lending.
UTB was advised by Lazard and CMS in this transaction.
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