Intermediate Capital Group, a private equity group specialising in mezzanine finance and buyout debt, has agreed to acquire a portfolio of European senior loans worth some EUR 1.4 bn from the Royal Bank of Scotland (RBS).

Intermediate Capital Group, a private equity group specialising in mezzanine finance and buyout debt, has agreed to acquire a portfolio of European senior loans worth some EUR 1.4 bn from the Royal Bank of Scotland (RBS).

The transaction, which is expected to complete by the end of August 2010, is believed to be the first acquisition of a leveraged loan portfolio from a lender without vendor financing. The equity for the investment will be provided by ICG and its funds - ICG European Fund 2006 and ICG Recovery Fund 2008. Financial terms were not disclosed.

London-based ICG said that it will manage the portfolio alongside its other senior loan and high-yield investment vehicles in its Credit Fund Management business which currently manages over EUR 4.7 bn of assets.

'We believe this portfolio acquisition from RBS underlines the strength of our origination capability and the depth and breadth of our credit expertise,' said ICG's Chief Executive Christophe Evain. 'This acquisition contributes to our broader strategy of growth as a leading global alternative asset manager.'

The portfolio, backed by properties across a diversified range of sectors, represents around 10% of RBS' leveraged loan portfolio, which amounted to £11.9 bn (EUR 14.4 bn) at end-June 2010.