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

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...