HSBC Holdings plc (HSBC) has sold a majority stake in its European private equity business, HSBC Private Equity Limited, to its existing management team.

Under the terms of the agreement, HSBC has reduced its shareholding in HSBC Private Equity Limited from 100 per cent to 19.9 per cent and management has acquired the majority 80.1 per cent stake. HSBC Private Equity Limited had net assets of £304,295 at 17 March 2003.

This change in shareholding structure follows a review by HSBC of its European private equity investment strategy. This concluded that by becoming a minority shareholder HSBC, and HSBC Private Equity Limited, will both obtain greater flexibility in the future development of their respective businesses.

Upon completion of the transaction, HSBC Private Equity Limited changed its name to Montagu Private Equity Limited. It will remain HSBC's principal vehicle for investing in European private equity opportunities.