The Priory psychiatric hospital group is confident of putting together a bid with a private equity partner for Four Seasons in the expectation of the care homes company’s being auctioned off by its creditors, people close to the situation said.

The UK group has hired UBS to find an acquisition partner and has held talks with Blackstone, Apax and Kohlberg Kravis Roberts. A partner would be expected to put in around £250m to £300m.