Bank of Scotland, part of the HBOS group, today announces that it has acquired a 9.9 percent shareholding in the Carlton Financial Group ("CFG"), the independent private merchant banking group based in London.

Under the terms of this agreement, Bank of Scotland and Carlton will work together to develop opportunities throughout the Carlton network for HBOS to apply its significant financial strength to funding property and industrial transactions. HBOS joins an impressive team at Carlton whose shareholders include Andrew Taee, George Magan and Sir Francis Mackay.

Founded in 2004, Carlton Financial Group consists of two complementary businesses: Carlton Corporate Finance, an independent corporate finance and advisory firm, and Carlton Capital Partners LLP, which provides investment management advisory services to private clients and investment institutions.

Peter Cummings, Chief Executive of Corporate Banking at HBOS said:

"Carlton has reached an exciting phase of its development and I am particularly pleased by this investment opportunity. Since its inception in 2004, the business has brought together a group of highly experienced, senior businessmen and banking professionals as well as building an impressive international network. The firm’s client relationships continue to grow as organisations and individuals are attracted by Carlton’s independence, track record and level of expertise."

Andrew Taee, Group Chief Executive of Carlton Financial Group commented:

"Attracting the support of HBOS is a great endorsement of our strategy and achievements to date in building an independent, international merchant banking business. As the Group continues to expand and develop, having the backing of HBOS as an equity investor will help us achieve our ambition."

Enquiries:

Carlton Financial Group
Andrew Taee
Tel: +44 (0) 207 355 2211

Bank of Scotland
Mark Elliott
Tel: +44 (0)131 243 5572
Mob: +44 (0)7810 055 810

Millbrook Partnership
Tim Grey
Tel: +44 (0) 207 520 9455
Mob: +44 (0) 7796 072298

Notes to editors:

Carlton Corporate Finance is an independent corporate finance advisory business actively involved in: merger & acquisition advisory (sell-side and buy-side); corporate strategy advisory; private placement of debt and equity . The firm recently acted for Rentokil Initial plc in their £80m acquisition of J.C. Ehrlich Co. Inc, a leading US pest control company.

Carlton Capital Partners LLP is an independent investment management firm, managing tailored absolute and total return portfolios for institutions, ultra high net worth individuals, charities and foundations. The firm manages portfolios that are invested globally and constructed by combining dynamic asset allocation with Carlton’s selection of the very best portfolio managers.