Friday, 1 August 2014
Last updated 7 hours ago
Sep 3 2013 | 12:11pm ET
Citigroup is all-but-out of the alternative investments business following the sale of more than $6 billion in assets, including a $4.3 billion private-equity fund.
Citi sold its Citi Venture Capital International to p.e. shop Rohatyn Group, led by Felix Rohatyn's son, Nick. Terms of the deal were not disclosed, but the combined entity, TRG, will have some $7 billion in assets under management in five funds, and will take on many of CVCI's staff, The Wall Street Journal reports.
Citi last month also sold a $1.9 billion emerging-markets hedge fund to its management, the latest in a string of management buyouts for Citi alternative investments business. In February, Citi spun off most of its hedge fund business as Napier Park Global Capital, and this month spun off the remains, about $1 billion, to EMSO Partners, led by the funds' managers. Citi has also stopped making new deals for a $3.4 billion infrastructure fund, which may also be spun off.
Terms of the newest deals were not disclosed, but they leave p.e. fund Metalmark Capital, whith $2.5 billion in assets under management, as Citi Capital Advisors' sole remaining fund. The bank hopes to sell that fund to its managers, as well.
Citi is exiting the alternative investments business to come into compliance with the Volcker rule, which will sharply limit banks' hedge and private-equity fund activities.