real-time news and commentary for investors
Tuesday, Sep 3
Citi sells over $6B in P-E, hedge-fund assets
- Citigroup (C) has reportedly sold more than $6B in private-equity and hedge-fund assets over the past month as it seeks to comply with prospective Volcker rule requirements.
- Citigroup has divested a $4.3B private-equity fund called Citi Venture Capital International to Rohatyn Group for an undisclosed amount, and a $1.9B emerging-markets hedge fund to the vehicle's managers. Citigroup is trying to sell a $2.5B North American private-equity-fund, Metalmark Capital, also to the management.
- Volcker is expected to cap the amount of money banks can inject into alternative investments such as private-equity and hedge funds to 3% of their tier-one capital, and prevent banks from investing in funds they don't manage.