GM Spins Off Pension Fund Unit

General Motors Corp. spun off the portion of its pension fund that invests in venture capital and buyout funds, saying it would be better off as a separate company.

GM retained 49% of the new firm, Performance Capital Management, which manages about $7 billion. Charles Froland, 55, who has worked in the pension unit since 1998, and other managers will own the rest.

“The intent is twofold: to be able to retain a very good group of private equity managers who have been together for a very long time, and to allow this group to attract new business and new investors,” said Jerry Dubrowski, a spokesman for Detroit-based GM.