Bank of America to Spin Off Private Equity Fund (BAC)

Bank of America

is planning to spin off its private equity fund, a company spokesman said on Tuesday. BAML Capital Partners, with $5 billion in assets, will be made into its own unnamed firm. Bank of America spokesman Jerry Dubrowski said that it was determined that the business was "not strategically critical to customers and our clients." According to a Reuters report, "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." Shares of Bank of America are higher by 1.5%, or $0.19, in Wednesday pre-market trade, to $12.53.