November 30, 2020

DealBook: Bank of America to Spin Off Buyout Arm

Bank of America Merrill Lynch has decided to spin off its $5 billion private equity arm, a representative for the bank confirmed on Wednesday.

The decision to make the unit independent is a fresh sign of a wider movement by banks to comply with the Volcker rule, which restricts how banks can invest their capital, and has led to a flurry of spinoffs and departures on Wall Street.

The private equity arm, BAML Capital Partners, was originally named Merrill Lynch Global Private Equity. Its past and current investments include Hertz; HCA; the energy company Targa Resources; Aeolus Re, a reinsurer based in Bermuda; and Bank of China.

The unit’s focus has been on the health care, consumer products and energy sectors, among others.

Article source: http://feeds.nytimes.com/click.phdo?i=7ca6341b073982e9ef4893407c139aa7

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