Barclays Private Equity has reached an agreement with Barclays to complete its spin-out from its parent bank.
According to the Financial Times, the managers of Barclays Private Equity will pay Barclays a share of future profits rather than making an upfront payment.
In the past, private equity groups that have bought themselves out from banking parents have made payments upfront. When Bridgepoint completed its spin-out from Natwest ten years ago, it followed this process.
In the case of Barclays Private Equity, its management team will pay a share of profits to Barclays over a fixed period of several years.
The spin-out will be finalised when Barclays Private Equity reaches a first close on its debut fund as an independent house. The firm is targeting €1.5bn for the fund, which is less than the €2.4bn it raised for its last vehicle.
The spin-out will also see a management reshuffle at the firm. French buyout veteran Guillaume Jacqueau is to take charge as the sole head of the firm, and UK boss Paul Goodson is set to leave, as is fellow UK colleague Dominic Geer.
Former France co-head Gonzague de Blignieres is staying with the firm as a senior partner and member of the investment committee. Peter Hammerman, head of Germany, will also continue in his role and sit on the investment committee. Rob Myers will take over from Goodson as the firm’s UK head. Manchester-based partner John Walker will move to London and Steve O’Hare will take charge of the Manchester team.
Three co-heads have led the firm in France, Germany and the UK since the passing of Graeme White in 2005, but when Jacqueau takes charge, the business will once again have a single head.