Buyout firms including Warburg, KKR eye RBS Irish arm cash injection

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RBSA parade of private equity majors have reportedly entered talks with state-backed UK bank RBS over injecting cash into its Irish arm.

Warburg Pincus, KKR, CVC and Permira have all examined the proposals according to the Sunday Times, which cited sources in London financial district The City.

It said the capital would be used to boost UlsterBank’s capital position ahead of a merger with another Irish bank, which will eventually see it float on the stock market.

RBS agreed to dispose of the remaining stake in its own private equity unit in May.

The banking group sold its stake in RBS Special Opportunities Fund to an investor consortium led by buyout firm Adams Street Partners according to Bloomberg, which cited two people with knowledge of the matter.

The deal valued the stake at around £100m and the Adams Street-led consortium may provide capital for deals, the sources said.

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