Bank of America’s merger with Merrill Lynch will result in the creation of a private equity and global operations division that is to be headed up by Brian Moynihan, currently the bank’s president of global corporate and investment banking.
“I have asked [Moynihan] to lead an effort that will redefine our business model, taking into account the strengths of both predecessor companies and our extensive opportunities around the world,” Ken Lewis, chief executive and chairman of Bank of America, said in a statement.
Moynihan joined Bank of America in 2004 following its merger with FleetBoston Financial. At Fleet, Moynihan led the brokerage and wealth management team.
Bank of America also said John Thain, chief executive and chairman of Merrill Lynch, will assume the title of president of global banking, securities and wealth management once the merger completes.
Bank of America’s private equity investment business is broken into three divisions: Banc of America Capital
Access Funds, which is a fund of funds; Banc of America Capital Investors, a private equity and mezzanine partnership that provides capital for growth financings, buyouts, acquisitions and recapitalizations; and Banc of America Strategic Investments Group, which originates, structures and executes direct equity investments, private equity funds and hedge funds.
The bank’s private equity business manages about $7.4 billion in private equity capital on behalf of Bank of America, with about half in direct investments and half invested through limited partnership interests in unaffiliated funds.