Washington-based hedge fund manager Carlyle Group has agreed to distribute private equity funds through the British private banking group, Coutts & Co. The bank, owned by Royal Bank of Scotland since it acquired NatWest, manages money for wealthy individuals. It suggests that private equity funds are looking to tap high net worth individuals at a time when institutional support for private equity funds is limited.
Carlyle has previously sought a similar distribution deal with Fidelity. The firm manages nine investment funds pursuing a variety of strategies, including leveraged buyouts and venture capital. American securities regulations now prohibit individual investors, or those with less than $25 million in assets, from investing in private equity partnerships.