Citigroup to sell private equity business to Lexington Partners, reports claim

9 July 2010

Citigroup has made an agreement to sell almost $1 billion worth of private equity investments to Lexington Partners.

According to PEHub, the transaction includes the sale of joint-investments and fund of funds which used to be part of the investment bank’s Citi Private Equity division, unnamed sources close to the deal have claimed.

If it goes ahead, the sale of the portfolio, which is to be managed by StepStone, is reported to be the largest in the secondary private equity market

It is part of a wider strategy by the bank, which is 18 per cent owned by the US government, to sell off divisions of the business deemed to be non-core assets.

Earlier in the year Citi sold three hedge fund businesses with assets under management of $4.2 billion to SkyBridge Capital.

In a statement, the bank said the sale was in line with its “strategy to reduce non-core assets, tightly manage risks and optimize the value of assets in Citi Holdings, while working to generate long-term profitability and growth from Citicorp”.

Lexington is thought to have worked on more than 270 completed secondary transactions.

By Jim Ottewill

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