Barclays is considering the disposal of
Barclays Private Equity (BPE) in order to strengthen its finances. Other options include selling some of its holdings in BPE's funds.
The possible move comes amidst concerns that British banks may have to strengthen their balance sheets in order to prepare for the expected deepening of the recession in 2009.
The Financial Services Authority is also putting pressure on banks to focus on their balance sheets.
It has been suggested that Barclays could sell off its various private equity businesses into a new company, which would be partly owned by the bank and mainly owned by its management.
BPE was created in 1979, and has eight offices in five countries. The private equity unit specialises in mid-market deals and invests up to €750m a year in between 10 and 15 deals. Barclays has about £929m invested in BPE funds.
BPE, which is thought to be potentially worth £3m in a sale, has invested in 350 companies since its establishment including Gaucho Grill, the restaurant chain.
