Bank of America Merrill Lynch has decided to spin off its $5 billion private equity arm. The decision to make the unit independent is a fresh sign of a wider movement by banks to comply with the Volcker rule, which restricts how banks can invest their capital, and has led to a flurry of spinoffs and departures on Wall Street.

The private equity arm, BAML Capital Partners, was originally named Merrill Lynch Global Private Equity. Its past and current investments include Hertz; HCA; the energy company Targa Resources; Aeolus Re, a reinsurer based in Bermuda; and Bank of China. The unit’s focus has been on the health care, consumer products and energy sectors, among others.  [NY Times 4/20/11]