NEW YORK, June 2 (Reuters) – Bank of America Corp spun off its last large private equity fund as it complies with post-crisis financial reform, creating North Cove Partners with more than $6 billion under management.
North Cove will manage private equity investments on behalf of Bank of America and other investors, it said on Thursday.
The new firm, based in New York, will be led by Managing Partners Chris Birosak, Brian Gorczynski and Angel Morales and will start operations with 15 investment professionals.
Bank of America said in April it would spin off the fund and has no plans to make new private equity investments.
The spin-off is the latest in a series of moves by the bank to comply with the Volcker Rule, part of the financial regulatory overhaul law passed in 2010 that limits proprietary trading or investments by banks using their own capital.
It also fits with Chief Executive Brian Moynihan’s efforts to sell off extraneous business units.
In 2010, the bank spun off Banc of America Capital Investors, a $1.4 billion private equity group, to form Ridgemont Equity Partners.
(Reporting by Paritosh Bansal; editing by John Wallace)