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Citi Cannot Wait To Put This Whole Alternative Investments Adventure Behind It

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Citigroup is oh-so-very-close to being out of the business it once spent $800 million to win the services of a certain V. Pandit to lead. And if the terms of these most recent fire sales are anything like those of previous alternative-investment fire sales at the House of Corbat, it is no wonder that they are not being disclosed.

The nation's third-largest bank by assets last week sold a $4.3 billion private-equity fund called Citi Venture Capital International for an undisclosed price to Rohatyn Group, a private-equity fund run by Nick Rohatyn, son of financier Felix Rohatyn, said people familiar with the matter.

It couldn't be determined what price the fund fetched.

On Aug. 9, Citigroup sold a $1.9 billion emerging-markets hedge fund to the fund's managers, the people said….

After the recent deals, Citi Capital Advisors will have only one fund, the $2.5 billion North American private-equity-fund Metalmark Capital. The bank is trying to sell that fund to its management, said people with knowledge of its plans….

In February, Citigroup sold most of its hedge-fund business to a new entity, Napier Park Global Capital, which had about $6.8 billion in assets under management. Citigroup retains a 24.9% stake in the fund. The minority stake allows the bank to maintain some ownership while complying with new regulations.

Citigroup in August sold the remaining portion of its hedge-fund business, EMSO Partners, to the fund's management. The fund had about $1 billion in assets under management.

Citigroup Dialing Back Its 'Alternative' Holdings [WSJ]
Citigroup to sell private equity fund to Rohatyn Group [Reuters]


By World Economic Forum [CC BY-SA 2.0], via Wikimedia Commons

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