Barclays Bank agreed to a management buyout of Barclays Private Equity, which will be renamed Equistone Partners Europe, according to statements issued by both companies.
Equistone will continue to manage its three existing funds, which raised a total about €5.3 billion ($7.3 billion). Barclays, which committed a total of about €1.9 billion in the three funds, will remain an investor, according to a spokeswoman at Equistone.
Equistone targets lower middle-market deals in Europe valued between €50 million and €300 million.
“Equistone is well positioned from the outset to capitalize on continuing investment opportunities in Western Europe as an independent investment firm,” Guillaume Jacqueau, managing partner at Equistone, said in the statement from the spun-off firm. Efforts to reach Mr. Jacqueau for further comment were unsuccessful.
According to data from Barclays, its private equity management company is valued at about £45 million ($72 million). “The transaction is not expected to have a material impact on Barclays earnings per share or capital ratios,” according to the statement.