In exchange, the mangers of Barclays Private Equity (BPE) are required to pay Barclays a share of future profits, reported the Financial Times.
Banks are facing growing pressure from regulators to separate risky activities such as private equity and hedge funds from their steadier retail and commercial banking operations.
According to the Financial Times report, BPE is also expected to shake up its management structure by appointing Guillaume Jacqueau, a managing director in Paris, as its new boss.
The BPE acquisition follows a similar proposal earlier this week by Lloyds Banking Group to separate its private equity arm from the group.
Barclays’ rivals including Citigroup and Goldman Sachs Group are also shedding some businesses such as their buyout units or divisions trading in their own capital to meet stricter regulations following the global financial crisis.
