This week Bank of America announced its plans to spin off its large private equity fund that possesses over $5 billion in assets. In addition, a company spokesperson said it has no plans to make new private equity investments.

BofA will spin off BAML Capital Partners into its own unnamed firm. The firm would then manage the bank's private equity assets for a fee -- winding those positions down over time -- and could begin accepting outside investors.

The assets will remain on BofA's balance sheet until they are wound down.

Company spokesman Jerry Dubrowski said BofA determined the business was "not strategically critical to customers and our clients" and the decision was made to spin off the unit.