BofA Said to Plan Spinoff of $5 Billion Private-Equity Fund

Bank of America Corp., the biggest U.S. lender by assets, plans to wind down its flagship $5 billion buyout fund as it seeks to preserve capital, said a person with knowledge of the plan.

The bank has made a “strategic decision” to sell most of the Capital Partners fund’s remaining investments over time, the person said, citing an internal memo sent late yesterday at the Charlotte, North Carolina-based company. The team managing those assets will become an independent firm, said the person, who declined to be identified because the plan isn’t public.