Citigroup is in talks to sell its private equity, real estate and hedge fund investment arms, which together manage about $20bn of assets, as the bank presses ahead with plans to sell $900bn of non-core assets to repay debt.
The talks come just weeks after US President Barack Obama announced plans to prevent banks from owning or investing in private equity or hedge funds under the “Volcker Rule”, which was inspired by Paul Volcker, former chairman of the Federal Reserve.
However, Citi said it had already designated Citi Private Equity, Citi Property Investors and Hedge Fund Management Group as non-core operations a year ago by moving them into Citi Holdings, its vehicle for assets due to be sold.
Full story: FT.com / Financials – Citigroup in talks to sell buy-out division