Banc of America Securities, Bank of America’s investment arm, is spinning off its European buyout division and its North America venture capital division to reduce its direct exposure to private equity.
The spinoffs of BA Capital Partners Europe and BA Venture Partners are taking place independently. The BA Capital spinoff is already in the final closing stages, according to two people familiar with the situation. Bank of
America is the sole investor in both groups, and for that reason has sought buyers that could honor any undrawn commitments to its vehicles.
The sale of BA Capital Partners Europe, which is expected to fetch $502.2 million, has attracted a Credit Suisse-led syndicate of investors that includes Partners Group of Switzerland and Pantheon Ventures of the U.K.
The sale of Banc of America's U.S. venture capital portfolio is a couple of months from closing and is drawing attention from buyers that are not traditional secondary investors. HarbourVest Partners of Boston is rumored to be among the interested buyers, but the portfolio will probably go to more than one investor, the two people said.
Banc of America is looking to sell $200 million to $300 million worth of investments out of the $400 million its team currently has under management for its BA Venture portfolio.
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