Barclays sells private equity arm

18 November 2010

The managers of Barclays' private equity division have reached an agreement with the bank which will see them acquire the operation without making a payment up front, but handing over a share of profits instead.

According to the Financial Times, the deal will see Barclays Private Equity (BPE) paying money to its former parent for several years and comes after the sector was particularly badly affected by the global financial crisis.

"We are never going to get back to making significant returns from leverage, so we are going to have to go back to making money the hard way," said Michael Queen, chief executive of private equity giant 3i in Paris yesterday (November 17th 2010).

Paris-based BPE director Guillaume Jacqueau will be promoted to being head of the organisation, while London managing director Owen Clarke will become its new chief investment officer.

Earlier this week, Lloyds TSB Development Capital chief executive Darryl Eales told the newspaper the body may be forced to seek third-party funds if new regulations are introduced.

By Gary Cooper

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