US private equity giants JC Flowers and Bain Capital Credit have become shareholders in the Co-operative Bank
Two US private equity giants have become major shareholders in the UK’s Co-operative Bank, amid speculation that they could lead a consolidation of the UK’s mid-sized banks.
JC Flowers and Bain Capital Credit have bought an approximately 10 per cent stake in from Blue Mountain Capital, a hedge fund.
The deal’s value was not revealed. Although never actually run as a co-op, the bank in the early 2010s found a £1.5billion hole in its finances, which led to the Co-operative Group selling 80 per cent of its stake to US hedge funds in 2014.
Sources said the deal could push the lender to start buying rivals, with Sainsbury’s Bank up for sale and TSB potentially coming to market.
