| Updated:
Bank of America to exit private equity
BANK OF AMERICA (BoA) is plotting an exit from private equity, as it looks to wind down its flagship $5bn (£3bn) buyout fund.
Bank of America will spin off BAML Capital Partners into its own unnamed firm and then manage the bank’s private equity assets for a fee – winding those positions down over time — and could begin accepting outside investors.
Company spokesman Jerry Dubrowski said BofA determined the business was “not strategically critical to customers and our clients” and the decision was made to spin off the unit.The private equity vehicle hadn’t been used since autumn last year.
The spin-off is the latest in a series of moves by the bank to comply with the Volcker Rule on propritary trading.