Allen & Overy (A&O) has landed the lead role for Lloyds Banking Group on the sale of its Insight Investment Management subsidiary to Bank of New York Mellon for £235m.

The magic circle firm was drafted in to advise Lloyds on the deal, which comprises Insight's external fund management operation, fielding a team led by corporate partner Alistair Asher.

The A&O team also includes intellectual property partner Jane Finlayson-Brown, regulatory partner Damian Carolan, employment partner Stefan Martin, incentives partner Sylvie Watts and pensions partner Dana Burstow.

A&O sits on Lloyds' panel but has stronger ties with legacy bank HBOS, which merged with Lloyds in 2008. Lloyds frequently turns to Linklaters for corporate advice; however, the firm is currently advising on various matters relating to the Government's asset protection scheme.

The deal has also generated roles for Dechert and Herbert Smith. Dechert was instructed by longstanding client Bank of New York Mellon with London financial services partner Peter Draper taking the lead role.

A Herbert Smith team led by corporate partner Mark Geday advised Insight's management team on all matters, including the transfer of Insight's internal insurance arm, which will be transferred to Scottish Widows Investment Partnership – Lloyds' asset management arm.

Commenting on the deal, Asher said: "This disposal forms part of a strategic review announced by Lloyds Banking Group in relation to the reorganisation of its wider asset management businesses. It was achieved through a controlled auction process on a tight timetable."