Wells Fargo spins off private equity unit

Wells Fargo today spun out its $2 billion private equity business, which took on the new name of Pamlico Capital, said Scott Perper, managing partner.

The team will continue to manage its $1.1 billion second fund, which closed in 2007 when Pamlico was a division of Wachovia and known as Wachovia Capital Partners. Wells Fargo acquired Wachovia in 2008.

Wells Fargo is the largest limited partner in the fund, renamed Pamlico Capital II; it was the first Wachovia Capital Partners fund with outside investor capital. Investors include GE Capital, Goldman Sachs, AlpInvest, HarbourVest, Lexington Partners and Partners Group.

All 17 former Wachovia Capital investment professionals are staying with Pamlico. They include the three managing partners — Mr. Perper, Watts Hamrick and Eric Eubank.