Citi May Sell Private-Equity Fund Stakes

Jan 8 2014 | 12:32pm ET

Having sold a $4.3 billion private-equity business, Citigroup is looking to sell its investments with the business.

The bank may unload its stakes in two funds managed by the former Citi Venture Capital International, valued at about $1 billion, according to Bloomberg News. Citi sold CVCI to Rohatyn Group in a deal that closed last month.

Citi, which has sold off substantially all of its alternative investments businesses to come into compliance with the Volcker rule, would rid itself of the Rohatyn stakes for the same reason: The rule bars banks from investing more than 3% of their Tier 1 capital in alternative funds.

"Citi has been considering several options for our private equity funds to comply with Dodd-Frank," a spokeswoman for the bank said in a statement.

One of those options would see Rohatyn sell the stakes on the burgeoning p.e. secondary market. New York-based Rohatyn is in talks with advisers about managing the process.

Citi sold off some $8.5 billion in private-equity holdings last year, including the Rohatyn deal. The bank also sold its Metalmark Capital p.e. unit, spun-off its main hedge-fund businesses.


In Depth

Fund Focus: Asian Frontier Capital Offers U.S. Investors Access To Untapped Markets

Mar 2 2015 | 6:47am ET

Hong-Kong based asset manager Asian Frontier Capital is making a capital raising...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk Management: The Due Diligence Challenge And Branding Opportunity

Mar 2 2015 | 8:41am ET

The hedge fund firms that make it easier for prospective investors to gain comfort...

 

Editor's Note