Bank of America (BAC) is continuing its exit from the world of private equity investing. Fortune has obtained the memo, written by BAML Capital Partners boss Jim Forbes:
This isn’t a terribly surprising development. BoA first signaled its dissatisfaction with the asset class last spring, when it sold a $1.9 billion portfolio of third-party private equity fund positions to AXA Private Equity. At the time, a source said that BoA was highly unlikely to make new LP commitments, although added that the decision was unrelated to Volcker Rule considerations.
Now the direct investment group also is leaving, per Forbes’ memo. Sounds like a stapled secondary will be the exit strategy. Apparently the big return from HCA (HCA) couldn’t convince BoA boss Brian Moynihan to keep it in house.
BoA also has a fund-of-funds called BAML Capital Access Funds, which manages money for some big pensions like CalPERS, CalSTRS and New York Common Retirement Fund. No word on if that’s also spinning out, but if I had to guess…