Lloyds in talks to sell part of fund business

LLOYDS Banking Group is thought to be in negotiations to sell part of the fund management arm it acquired when it merged with HBOS last year for up to &pound;300m in a private equity-backed management buyout. <br /><br />Abdallah Nauphal, the former chief executive of Insight Investment Management and managing director of asset management at Lloyds, is understood to be planning a management buyout of Insight&rsquo;s third party business.<br /><br />The unit &ndash; which manages funds for external clients outside the Lloyds group &ndash; has assets under management worth around &pound;74bn, about two thirds of Insight&rsquo;s total funds. It is thought that Nauphal is set to secure the backing of one or more private equity houses. <br /><br />Insight&rsquo;s remaining in-house insurance funds are set to be merged into the &pound;80bn Scottish Widows Investment Parnership.