BARCLAYS CAPITAL is expecting to shed its private equity arm by the autumn while at the same time raising £1.8bn from an independent fund, it is understood.
The move is thought to have been agreed at Barclays Private Equity’s annual meeting and will see the business spun off from its parent company with no further investment from BarCap. The venture could also retain a new name.
Although the final structure has not yet been decided, it is understood that BarCap, the investment banking arm of Barclays, will retain a contract with the private equity business to manage its historic portfolios where the bank was the founding investor.
It is understood that Barclays has recently moved away from its role as main capital provider to the private equity business and now invests only a quarter of all funding for transactions with the rest coming from outsiders.
BarCap’s private equity business operates in five countries and was set up more than 30 years ago. It has invested in over 350 businesses and typically spends over €750m (£650m) a year on ten to 15 transactions.
BarCap would not comment on the bank’s plans when called last night.