Lone Star picks up Investec’s Irish mortgage business for £540m

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money-1159573-mPrivate equity firm Lone Star Funds has picked up Investec’s Irish loan business Start Mortgage for £540m ($877m).

The deal comes just a few days after Investec confirmed its plans to sell UK specialty mortgage provider Kensington for £180m to private equity firms Blackstone and TPG.

Lone Star’s acquisition of Investec’s Start Mortgage constitutes approximately 70 employees and will represents a pre-tax revenue loss of £21m in the year ending March 2014 to Investec.

The South African bank said the deal was part of its plan to simplify and reshape its banking business.

Texas-based Lone Star had reportedly secured $5.7bn for its latest distressed debt vehicle Lone Star Fund IX as of April this year.

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