When Royal Bank of Scotland announced its half-year results last month, it came as something of a surprise to Royal Bank Private Equity to hear its performance reported as a drag on the main bank's revenues, which otherwise were up 10%. The private equity arm had come back from the brink of dissolution to enjoy one of the most successful six months of investing in its history.

Tim Farazmand, director of Royal Bank Private Equity and an old hand who joined the autonomous captive in 1994, says: 'In the last eight months or so we have committed time and money to chasing about 10 or so deals and we have completed eight of them. We are unlikely to see that kind of run again. It would be great if it was always like that but it would be unrealistic to expect it.'