Barclays (BARC.L) is to sell a portfolio of private equity fund assets worth approximately €520 million (£460 million) to AXA Private Equity.

The portfolio includes US and European private equity assets held and managed by Barclays Capital.

The move was prompted by proposed regulations that will affect the cost to banks of holdings private equity investments.

According to the group, the portfolio will not include any investments managed by its private equity division, Barclays Private Equity.

Chris Lucas, group finance director, said the transaction exceeded book value and would include a small profit.

He added,'This transaction is further evidence that we are delivering on our commitment to increase our balance sheet efficiency.'

The deal is expected to complete later this year, as conditions are met.

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