Barclays Bank PLC has signed a definitive agreement to dispose of a €520 million (£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 the transaction is further evidence that the bank is delivering on its commitment to increase its balance sheet efficiency.
Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking and wealth management with an extensive international presence in Europe, the Americas, Africa and Asia.
With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 147,000 people. Barclays Plc moves, lends, invests and protects money for over 48 million customers and clients worldwide.
AXA Private Equity is a leading private equity firm with US$25 billion in managed assets and a global reach extending across Europe, North America and Asia. The firm offers investors the full spectrum of private equity services for every market segment: direct funds, infrastructure financing, mid cap and small cap buyouts, venture capital, co-investments, fund of funds as well as mezzanine financing.
With offices in Paris, Frankfurt, London, New York, Singapore, Milan, Zurich and Vienna, AXA Private Equity supports the development and long-term growth of its portfolio companies with sustainable growth strategies and by granting them access to the AXA international network. AXA Private Equity has earned the trust of its investors by regularly supplying them with transparent performance data on its funds and portfolio companies.