Citi Selling Off Infrastructure Fund Assets As Managers Leave

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.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note