private equity

This week Bank of America announced its plans to spin off its large private equity fund that possesses over $5 billion in assets. In addition, a company spokesperson said it has no plans to make new private equity investments.

BofA will spin off BAML Capital Partners into its own unnamed firm. The firm would then manage the bank's private equity assets for a fee -- winding those positions down over time -- and could begin accepting outside investors.

The assets will remain on BofA's balance sheet until they are wound down.

 Bank of America decided to sell First Republic private bank to a group of private equity investors. Among the participant are General Atlantic Partners and Colony Capital, are part of the deal, with First Republic Chairman and Chief Executive James Herbert part of the winning bid.

According to the official statement of BofA First Republic's current management would continue to run the bank. The transaction is scheduled for the second quarter of 2010.

The private equity division of Lehman Brothers has reached an agreement to keep going as an independent company with new investment in luxury goods.

Under the movement, Lehman Brothers firm retains a substantial interest in private equity shop, called Lehman Brothers Merchant Banking which the company has $4.5 billion under management.