Better Capital, a listed private equity turnaround specialist founded by former Alchemy Partners managing partner Jon Moulton, expects a raft of distressed investment opportunities as UK and Irish banks look to offload underperforming loan portfolios.

The firm predicted in its interim management statement: "Early indications are that a number of major high street banks in the UK and Ireland are starting to harvest their underperforming loans and that the advisory community is experiencing an increase in activity; which should further accelerate when interest rates increase. Better Capital continues to receive information regarding a variety of investment opportunities and is confident that deal flow will remain strong for the coming year."