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The bank’s private equity fund interests were valued at $5.4bn, a 14% drop from the end of 2014.
The bank is letting the investments run through the end of their life and may tap the secondaries market only if interests remain by the Volcker Rule’s July 2017 deadline.
The bank is coming to market with a large portfolio of private equity fund stakes, according to sources familiar with the matter.
From Basel III to AIFMD, the list of regulations is growing and the secondaries market is feeling their impact.
The bank has decided to let the investments run through the end of their life and may consider tapping the secondaries market only if interests remain by the Volcker Rule’s July 2017 deadline.
European banks have largely sold off the bulk of their private equity stakes as a result of financial regulations. Now, they are increasingly using the secondaries market as a portfolio management tool.
An extension before the Volcker Rule takes effect gives financial institutions more time to comply.