The government backed bank Lloyds has announced the sale of its private equity instruments for £1.03bn, as it looks to reduce its stakes in buyout funds. The majority of the investments are being sold to Coller Capital, a London-based investment group. The sale follows a £20.3bn bailout amidst the 2008 crisis.

Lloyds will continue to manage the portfolio in exchange for a fee of under £10m a year, according to a statement from Coller Capital. The fund specialises in buying out private-equity portfolios from investors looking to free up capital.

The sale is part of a general strategy by Lloyds to slim down its operations and reduce their non-core assets to under £70bn by 2014. It will also enable Lloyds to comply with new regulations that state banks must ensure there is more capital to fold against investments.

The portfolio in question is reported to have suffered losses of £49bn last year.