Tuesday, 21 October 2014
Last updated 2 min ago
Jul 8 2010 | 1:33pm ET
Continuing its sell-off of alternative investment assets, Citigroup has struck a deal to sell $900 million of its private-equity investments to Lexington Partners.
Lexington, which has more than $18 billion in secondary p.e. assets under management, will pay about $900 million for the assets, a slight discount, owned by Citi Private Equity. Under pressure from the U.S. government, which provided the bank with $45 billion in bailout funds and is Citi’s largest shareholder, Citi put the 10-year-old private equity unit up for sale last year.
The Lexington deal is one of the largest secondary p.e. sales in history. It was first reported by the PE Hub blog. Among the pieces being bought by New York-based Lexington is an interest in Citigroup Capital Partners II, a $3.3 billion co-investment fund.
As part of the deal, Citi will turn over management of the $10 billion unit’s investments to StepStone Group, a California-based p.e. adviser.
Citi is not completely quitting the private equity business, however. The firm will retain its $1.7 billion Metalmark Capital Partners unit.
The sale of the Citi P.E. assets comes after previous deals to sell three hedge fund units to SkyBridge Capital and a real-estate investment business to Apollo Management.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...