Lone Star Funds Completes Sale of novobanco to BPCE

Nani Holdings S.à. r.l., an affiliate of Lone Star Funds (“Lone Star”), today announced it has successfully completed the sale of its majority stake in Novo Banco, S.A. (“novobanco” or “the bank”), Portugal’s fourth-largest bank, to BPCE, a leading European banking institution.

Pursuant to the purchase price mechanism agreed to in the June 2025 Memorandum of Understanding and the subsequent acquisition agreements of August and October 2025, the final acquisition price as of December 31, 2025, was set at €6.5 billion, implying a price-to-earnings multiple of 7.85 based on the 2025 net profit of €828 million. With the increase in novobanco’s equity during the first four months of 2026, the total acquisition price for 100% of the share capital of novobanco stands at €6.7 billion as of April 30, 2026.

Lone Star acquired a 75% stake in novobanco in 2017 and led a comprehensive transformation of the institution supported by the bank’s other shareholders, employees, clients and other relevant stakeholders. Over this period, novobanco strengthened its capital position, significantly reduced non-performing assets, enhanced its risk management framework, and invested in customer service and digital capabilities to better serve its clients. Today, novobanco is positioned as a resilient and profitable financial institution serving Portugal.

novobanco will now operate as part of BPCE, benefiting from the scale, expertise, and resources of one of Europe’s largest banking groups to support its continued growth and long-term development.

Donald Quintin, Chief Executive Officer of Lone Star Funds, said: “This transaction represents the successful culmination of our investment in novobanco, a multi-year partnership that repositioned the bank through investment and a targeted value creation strategy. We are proud of the transformation achieved alongside novobanco’s stellar management team and believe BPCE is the right long-term owner to support the bank’s continued growth and service to the Portuguese economy.”

About Lone Star Funds

Lone Star is a leading investment firm with its principal office in London, UK advising funds that invest globally in private equity, credit and real estate. The firm has been successfully navigating complex situations for over 30 years. The funds are experienced value investors that seek opportunities in situations that are in flux or complicated by specific structural or financial factors, regardless of the prevailing market environment. Our deep bench of senior leaders and expert deal professionals ensures a strong foundation for successful investments and strategic decision-making. Since the establishment of its first fund in 1995, Lone Star has organized 26 private equity funds with aggregate capital commitments totaling approximately $96 billion. For more information regarding Lone Star Funds, go to www.lonestarfunds.com. Follow us on LinkedIn.

About BPCE

BPCE is the second-largest banking group in France and the fourth-largest banking group in the euro zone in terms of capitalization. Through its 100,000 staff, the group serves 36 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d’Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset & wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The Group’s financial strength is recognized by four credit rating agencies with the following senior preferred LT ratings: Standard & Poor’s (A+, stable outlook), Fitch (A+, stable outlook), Moody’s (A2, stable outlook) and R&I (A+, stable outlook).

Lone Star Funds finalizes novobanco sale to BPCE, showcasing banking deal completion in Portugal

Contact

Andrew Johnson, Global Head of Communications and Public Affairs
Phone: 212-896-2251
Email: [email protected]