Wednesday, April 20, 2011

Bank of America's (BAC) Large Private Equity Fund Being Spun Off

The last huge private equity fund under the umbrella of Bank of America (NYSE:BAC) is being spun off, including the $5 billion in assets it represents.

Bank of America said it will spin off BAML Capital Partners into a yet-to-be-named firm of its own.

Assets held in BAML will remain on the balance sheet of Bank of America until they are wound down.

According to BofA spokesman Jerry Dubrowski, the giant bank decided the private equity firm was not strategically critical to customers and our clients," resulting in the decision.

For a fee the firm will manage the private equity assets of Bank of America as it winds them down over a period of time. Eventually it may start to accept outside investors.

No one has been named to head up the new business yet.

Bank of America closed Tuesday at $12.34, dropping $0.08, or 0.64 percent.

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