Barclays could ditch private equity arm
Barclays is considering a deal to spin off its private equity arm to management in an arrangement worth £100m that will underline the bank’s determination to focus on its retail banking and capital markets operations. Last year the bank sold its fund management arm, BGI, to US group Blackrock in a deal that boosted its capital cushion at a time when regulators were demanding that banks hold more in reserves.
A sale of Barclays Private Equity (BPE) to managers headed by Paul Goodson and Rob Myers would have the advantage of jettisoning a division of the bank that could come under the spotlight if the UK adopts proposed US rules to curb the activities of international banking groups. The US president Barack Obama suggested last month that US banks be banned from involvement in hedge funds, private equity and derivatives trading.
City sources say an MBO of Barclays’ private equity business has been under active consideration since the end of last year, but an announcement has been delayed because of the complexity of a deal. Barclays is understood to want to retain a small stake in the operation and there have been arguments about valuation and branding. Analysts say BPE generated fees last year of about £400m …