M&G, Pimco and Starling Bank are among the bidders participating in the £1bn-plus auction of the specialist mortgage lender, Sky News understands.
Sky News has learnt that Starling Bank is bidding against Barclays and another high street lender to buy Kensington’s platform, while Pimco and M&G Investments are battling to buy the company’s mortgage assets.
In total, the two deals are expected to command a price of £1bn or more.
Kensington has been owned by Blackstone and Sixth Street – which was previously part of TPG, another private equity group – since 2014, when they took Kensington Group off the stock market.
It is one of the largest issuers in the residential mortgage-backed securities market, having issued £12bn of mortgages since 2015.
Read more: Sky News
