O’Melveny bags top role on Coller’s Bank of Scotland deal

O’Melveny & Myers secured the prize mandate acting for longstanding client Coller Capital on its acquisition of a majority stake in Bank of Scotland’s private equity business.

An O’Melveny team led by London investment funds partners John ­Daghlian and James Ford advised Coller on the creation of a new joint venture, Cavendish Partners, which acquired a 40-asset strong portfolio from Bank of ­Scotland Integrated Finance Business (BoSIFB).

The team also featured O’Melveny finance partner Sherri Snelson, who advised on the debt side, tax ­partner Jan Birtwell and Brussels antitrust partner Christian Riis-Madsen.

“This was a complex transaction,” said Coller partner Tim Jones, ” and the O’Melveny team was impressive in helping us meet a series of tight ­deadlines.”

Coller will own 70 per cent of the new entity, with the balance held by former owner Lloyds Banking Group (LBG), which acquired the business when it took over the running HBOS in 2008.

Clifford Chance and SJ Berwin bagged sale-side mandates acting for LBG on the banking and funds side.

For Clifford Chance, banking partner Robert Lee and tax partner Jonathan Elman took the lead, while SJ Berwin fielded a team led by corporate chief Steven Davis and also featuring finance partner Ian Borman.

The BoSIFB management team turned to ­Dickson Minto for advice, with name partner Alastair Dickson and private equity partner Martin McNair ­taking lead roles.

Macfarlanes funds partner Stephen Sims advised Graham Clempson, who has taken on the role of chair of the investment committee at Cavendish.

Coller acquired its stake in the operation for around £330m, with the price paid by Cavendish totalling £480m. It is under-
stood that it will inject a further £100m into the portfolio.

The private equity investor has a longstanding relationship with O’Melveny in Europe. Recently, the US firm advised on Coller’s investment in a portfolio of 30 healthcare and technology assets owned by 3i Group.

Coller was recently reported to have invested in funds boutique firm MJ Hudson, launched by ­former O’Melveny partner Matthew Hudson, but
the investor has since denied this.