Investec has announced the sale of Kensington Group plc, together with certain other Investec mortgage assets, to funds managed by Blackstone Tactical Opportunities Advisors and TPG Special Situations Partners.

The investment bank will receive £180 million in cash based on a tangible net asset value of the business of £165 million at 31 March 2014.

Ian Henderson has been appointed as group chief executive; he was previously chief executive of Shawbrook. Keith Street will continue to lead the Kensington mortgage business.

Henderson said: “I am delighted to join Kensington and look forward to working with Keith Street and the management team under new ownership. Kensington is an outstanding business and we will use its expertise and market position to broaden our product range for new and existing customers.”

David Blitzer, head of Blackstone Tactical Opportunities, said: “Kensington presents an exciting opportunity to back a high quality management team and to invest in the UK mortgage market. Kensington is a best-in-class specialist lender with an established track record in the UK and strong customer relationships. We will invest in growing the business in the mortgage space as well as extending the range of its activities in specialty finance.”

Completion of the transaction is subject to customary regulatory and anti-trust approvals.

A statement from Kensington said it was very much looking forward to working with our new parent to build on its history, develop its existing proposition and grow its business for the future.

Keith Street, chief executive of Kensington, said: “Investec has been a supportive parent throughout the financial crisis and the recent recovery. Kensington is a great business with a strong brand and close relationships with its customers and intermediaries.

“Under the ownership of Blackstone and TPG Special Situations Partners (TSSP) we have an exciting opportunity to take the business to the next stage of its development.”