Barclays has decided to cease new investments by its private equity arm Barclays Ventures, reported the Financial Times.

According to the report, Barclays is also planning to to spin off the team at Barclays Private Equity, which manages money from third-party investors and invests in larger mid-market buy-out deals.

The decision has reportedly triggered the resignation of Kip Kapur, managing director of Barclays Ventures and chairman of the Barclays group credit committee, from his position.

The dismal performance by some of the Barclays Ventures’ recent investments, such as the company’s EUR100m buy-out of the European arm of the Italian sports clothing brand Fila two years ago, is said to be the major reason behind the decision, according to the source.

In total, Barclays Ventures owns stakes in 55 companies including 99p Stores, Original Additions, a hair and nail care company; and You At Work, an employee benefit consultancy.

Barclays Ventures is the new entrant to the list of private equity firms like Candover, Alchemy Partners, and European Capital, which were victims from the financial crisis.