Citigroup, which is scaling back illiquid investments to comply with rules that limit risk-taking by banks, may sell about $1bn in holdings managed by its former private-equity business, according to five people familiar with the matter.
Bloomberg reports that the bank is considering selling its stakes in funds managed by Citi Venture Capital International, or CVCI, a private-equity manager that Citi sold to Rohatyn Group in December, said the people, who asked not to be identified because the talks are private.
Rohatyn plans to give investors in two CVCI funds the option to sell their holdings to other buyers, who would provide fresh capital for new deals, said one of the people.
Citigroup and other banks have been shedding assets and operations as they come under regulatory pressure from the Volcker Rule, the portion of the Dodd-Frank Act that seeks to limit risk-taking by financial companies.
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