Standard Bank Group is reportedly spinning off its private equity business following, following in the footsteps of global banks which have this year moved to cut exposure the asset class.
Standard Bank is understood to have begun talks to sell off the entire Standard Bank Private Equity, with the process set for completion by mid-2011. Standard Bank Private Equity is expected to cut the size of its 20-strong investment team and begin raising its first independent fund in 2012.
Standard Bank Private Equity is estimated to have a portfolio worth almost $200 million.
The sell is understood to have been spurred by regulatory concerns, which global regulators now looking to have banks reduce investment in alternative assets.