The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Private equity: What Volcker rule?

With public markets shaky, there is demand for private equity, and banks want to be in on it despite regulatory threats.

The Volcker rule still lurks, threatening banks’ involvement in private equity and hedge funds, but it seems Wall Street is marching on regardless. Citi is reportedly looking to raise $3.5 billion of private equity and hedge fund capital, and JPMorgan is pushing ahead with talks to buy Gávea Investimentos, a $5 billion Brazilian hedge fund and private equity group.

Banks have been pressuring Congress for exemptions to the part of the proposal that inhibits them from having interests in private equity and hedge funds, and the moves by Citi and JPMorgan seem to point to confidence that they will succeed.

So just why are Citi and JPMorgan prepared to rock the boat? The answer might lie with the decision of a small California-based solar manufacturer called Solyndra. The firm had been planning a well-publicized IPO since December but in June announced that it would instead tap $175 million of private capital from backers including Argonaut Private Equity, Masdar Abu Dhabi Future Energy Company and Richard Branson’s Virgin Green Fund. After an appalling 2009 and a mediocre first quarter this year for fund raising, it seems private equity is back.

Public markets are just too much of a gamble right now.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree