Citi Sheds Hedge, Private-Equity Funds In August Deals

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.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of