Thursday, 31 July 2014
Last updated 14 hours ago
Aug 13 2013 | 11:33am ET
Citigroup has begun to liquidate a private-equity infrastructure fund after most of its management team left the bank.
Citi has started to sell off stakes from Citi Infrastructure Investors' six-year-old, $3.4 billion fund, The Wall Street Journal reports. The unit hopes to nearly halve its 37% stake in the U.K.'s Yorkshire Water.
The move to sell follows an apparently failed effort by CII's leaders to raise money from investors to facilitate the unit's spin-off. Citi has already spun-off or sold a number of alternative investments businesses, including most of Citi Capital Advisors' hedge fund unit, which earlier this year became Napier Park Global Capital.
"Following a decision by Citigroup in 2012 to exit the remaining businesses of Citigroup Alternative Investments, the CII Partners plan to spin out a new investment management business," CII co-head Felicity Gates and partners Colin Campbell, John-George Duthie-Jackson and Ghislain Gauthier said. The group still hopes to acquire some of CII's assets, writing that "Citigroup has indicated to the CII Partners that finding a suitable sponsor is a prerequisite to Citigroup considering transferring any of the existing CII asset to management."
The memorandum sought interest for a 25% stake in the fund.
Gates, Duthie-Jackson and Campbell have all left Citi, Financial News reports. Gauthier, CII's chief investment officer, remains at the firm for now, leaving co-head Holly Koeppel to manage the fund's liquidation.
"Citi has taken steps to position [CII] to meet its core asset-management mandate and will continue to manage investments to provide long-term value for its investors," a Citi spokeswoman told the Journal.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…