More commercial banks to start P.E. funds?
Private equity funds are increasingly a must-have option at top commercial banks. Citigroup is reportedly in the process of raising a fairly large fund. The news that Bank of America aims to launch a $1 billion fund strikes many as a smart move as well. Increasingly, top customers want access to what they perceive as higher-return vehicles. All this may be coming a bit too late, as returns are likely to lag. But the customer is always right! We'll see how these commercial bank-operated funds fare vs. investment bank-operated funds.
- Here's a Boston Globe article on Bank of America
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