Pegasus Retirement Homes has undergone a management buyout with Royal Bank of Scotland as equity partner.

Pegasus, which has a turnover of £45m, was put up for sale by Peter Askew, chief executive, in March. However, it is thought that the £100m price tag deterred many bidders, and prompted the buyout.

Following the buyout, Matthew Thorne, the former group finance director of housebuilder McCarthy & Stone, has been appointed non-executive chairman.

The buyout is the second at the company in the past decade. A deal backed by RO Trading took place in 1998, also led by Askew.