HgCapital, the UK middle-market fund, has quit the private equity auction for Saga, the UK holidays-to-insurance group for the over-50s, just days before the final deadline as one senior adviser described the sales process as turning 'brutal'.

The exit of HgCapital from the bidding consortium of JP Morgan Partners and Candover, came a day after bankers close to Saga's flotation said the group had shelved its initial public offering in favour of a private equity sale.