Funds managed by Blackstone Tactical Opportunities and TPG Special Situations Partners have agreed to acquire Kensington, a specialty UK residential mortgage lender, from Investec in a deal said to be valued at £180 mln (€225 mln).

Funds managed by Blackstone Tactical Opportunities and TPG Special Situations Partners have agreed to acquire Kensington, a specialty UK residential mortgage lender, from Investec in a deal said to be valued at £180 mln (€225 mln).

Kensington is a major player in the UK specialist residential and buy-to-let mortgage market with 140 staff, 30,000 customers and gross assets of £3.7 bn.

Blackstone and TSSP said they intend to 'develop Kensington’s mortgage lending business and broader speciality finance capabilities'. They are appointing Ian Henderson, previously CEO of specialist bank Shawbrook, as group chief executive to lead that strategy.

'Kensington presents an exciting opportunity to back a high quality management team and to invest in the UK mortgage market,' said David Blitzer, head of Blackstone Tactical Opportunities. 'We will invest in growing the business in the mortgage space as well as extending the range of its activities in specialty finance.'

Investec acquired the company in May 2007 in a £283 mln transaction run by Fenchurch Advisory Partners.