Bank of America Corp. is building up its teams focused on the world's wealthiest family offices, buyout firms and sovereign wealth funds to take advantage of a surge in dealmaking.
The Charlotte, N.C.-based financial-services giant has made a series of senior appointments in recent months and put some of its top bankers on a new Global Private Capital Council. The moves give Bank of America a more formal structure to identify new business from the deep-pocketed investors, said Luigi Rizzo, head of investment banking for Europe, the Middle East and Africa.
"Private capital is increasingly replacing public pools of capital," Mr. Rizzo, who's also head of EU corporate and investment banking, said in an interview this month. "We will continue to direct more resources into these different streams, whether it be sovereign or pension funds, family offices or buyout firms."
Money has been building up in private funds in recent years as investors, turned off by low interest rates and volatile stock prices, seek new ways to generate returns. As a result, private equity and sovereign wealth funds have become powerful dealmakers -- providing funding and making acquisitions at a historic rate and generating fat fees for the banks that advise them.
Bank of America appointed Andreas Loulloupis as global head of private capital family office banking in June, while Woody Boueiz was named head of sovereign wealth funds and pension investors globally last year. It promoted Laurent Dhome and Vijay Ralhan last month to become co-heads of financial sponsor coverage for EMEA.
The firm has also hired Thomas Turner from Goldman Sachs Group to be a managing director in its financial sponsors group in London starting in October. Bank of America is still looking for talent internally and externally to support the initiative, Mr. Rizzo said.
The appointments come as takeovers involving private capital rose 3% this year to $400 billion, the highest for any comparable period in 12 years, data compiled by Bloomberg show. Bank of America ranks fourth among advisers on all M&A transactions involving such funds this year, trailing Goldman Sachs, Morgan Stanley and J.P. Morgan Chase & Co. That's up from fifth place last year and seventh place in 2017.