Private equity firm CVC Capital Partners is buying iShares asset management business from Barclays for £3 billion in a deal that will be 70% funded by the British bank.
Barclays said it expects to achieve a net gain on the deal of £1.5 billion.
Barclays will provide £2.1 billion of the financing for the deal. It is also entitled to receive 20% of the equity return from iShares once CVC has achieved certain minimum returns.
However, the British bank has secured 'go-shop' clause, where it can seek to get a better offer for iShares from elsewhere until June 18.
CVC, founded in 1981 and headquartered in Luxembourg, closed an €11 billion fund at the start of this year, and had about €16 billion available including money available from previous funds.
