Alternative credit manager Bayview and investment firm Sixth Street have acquired UK-based Castle Trust Bank to expand its specialist lending and retail finance business.

Vehicles backed by the $44.7bn (£33.2bn) Bayview and $135bn (£100.3bn) Sixth Street have acquired Castle Trust from private equity firm JC Flowers & Co.

As part of the acquisition, the firms will commit additional capital to Castle Trust to expand the bank’s specialist lending and retail savings franchise through its Omni Capital Retail Finance business.

Both Bayview and Sixth Street stated that they will also provide the bank with their expertise in credit markets and asset-based finance through the acquisition.

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“We look forward to supporting the bank’s continued growth across savings, specialist lending, and retail finance, while it delivers innovative products and excellent customer outcomes,” said Pierre Lussato, managing director at Bayview.

Castle Trust Bank will continue to be led by its existing management team, including chief executive Martin Bischoff, the firms said.

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“We have grown customer savings balances to more than £1.6bn, built a specialist property finance loan book of more than £1.1bn and a retail finance loan book exceeding £200m, establishing a strong platform for future growth,” said Bischoff.

“With the backing of our new shareholders, we are well placed to invest in our customer proposition, expand across retail savings, specialist property and retail finance, and pursue additional growth opportunities…”

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