Barclays Bank PLC has signed a definitive agreement to dispose of a €520m (£460m) portfolio of US and European private equity interests held and managed by Barclays Capital, its investment banking division, to AXA Private Equity.
The portfolio includes investments in private equity funds as well as several direct private equity interests held by Barclays Capital. The portfolio does not include any investments managed by Barclays Private Equity.
The sale of this portfolio has been agreed in anticipation of new regulations impacting the cost to banks of holding private equity investments and their future returns. The purchase price for the portfolio exceeds the book value and the sale is expected to result in a small profit on disposal and a small increase in Core Tier One capital.
Completion is subject to obtaining certain consents and waivers and is expected to occur in phases, with the initial completion expected to take place later this year.
Chris Lucas, Barclays Group Finance Director, said:
“This transaction is further evidence that we are delivering on our commitment to increase our balance sheet efficiency.
"We are pleased with this transaction and continue to look for similar opportunities going forward.”
