Citigroup 'to sell $10bn private equity unit'

Citigroup is making plans to sell off its private equity unit, said to be valued at $10 billion.

Company insiders told Bloomberg that Citi Private Equity, which manages around $2 billion worth of funds for Citigroup, may be bought out by its current managers, who are considering whether to run it themselves with new partners or bring in new financial backers.

The possible move is part of wider divestment plans by Citigroup, which is attempting to shed assets due to regulatory pressure to reduce its size.

Despite announcing plans to pay back its Troubled Asset Relief Program debts, 27 per cent of the shares in the company are still owned by the government.

Last week, Bloomberg reported that Citigroup is also close to selling off its Citi Property Holding division.

According to inside sources, those in the running to take over the unit include Apollo Global Management and Macquarie Group.

By Tony Aynsley