Bank of Ireland has set up a joint venture with US private equity specialists Paul Capital Partners (PCP) to provide a private equity fund of funds.
The deal is part of Bank of Ireland's plan to broaden its portfolio of asset management businesses to help improve recent poor performances in that division.
The new joint venture, which will provide fund of funds products and advisory services to institutional and other investors globally, will be called Paul Capital Top Tier Investments, LLC and will be based in San Francisco.
Bank of Ireland said it had paid $25 million in cash for a 50 per cent share in the new company and may increase its shareholding up to 70 per cent no earlier than 2008 on a pre-agreed basis.
It has paid a further $5 million in respect of interests in existing funds of funds. PCP has contributed its existing private equity fund of funds business, with assets under management of $1.1 billion, including its fund of funds team and associated investment resources and facilities in return for a 35 per cent interest.
Key management own the remaining equity.