Barclays Private Equity European Fund Raises $3.3 Billion

Barclays Private Equity, the private equity arm of U.K. bank Barclays, raised 2.4 billion euros ($3.3 billion) for its third European fund, with the level of commitment from investors exceeding expectations, the bank said in a statement.


Barclays Bank poured 650 million euros in the fund, with 25 investors including Allianz Private Equity Partners, LGT Capital Partners, Morley Fund Management, Pantheon Ventures, Standard Life Equity Partners and SVG Advisers adding about 1.8 billion euros.

"It's a proof of confidence from our professional investors, both in our teams and in the midterm future of the leveraged-buyout mid-cap market," Gonzague de Blignieres, co-head of Barclays Private Equity Europe, said in the statement.

"The level of commitment of our investors exceeded our expectations," he added.

Barclays shares have been battered in recent weeks over mounting fears on the bank's exposure to the U.S. subprime crisis. However, bank officials have said the bank would not lose more than 75 million pounds ($150 million) in a worst-case scenario.