Barclays nearer to a private-equity split

Barclays is closer to spinning off its top-performing private-equity business in a move that would further strengthen its balance sheet.

Roger Jenkins, the Barclays Capital top earner who organised much of the bank's Middle East fund-raising last year, has led the negotiations for a separation of the business before it starts raising new capital for its fourth fund next year.

The talks have also involved the individual heads of Barclays Private Equity who would lead any management buyout; Paul Goodson in the UK, Gonzague de Blignières in France and Peter Hammerson in Germany, according to Financial News.

Approval for any spin-off is needed from third-party investors in the three existing funds. Barclays has gradually committed less and less of its own capital to the funds.

A spin-off is unlikely to raise much money for Barclays but would improve its capital ratios by removing what are categorised as riskier investments from its balance sheet. Terms of the deal have yet to be finalised.