Citi sells £1bn in private equity assets to Axa
US BANK Citigroup has agreed to sell a portfolio of private equity assets to Axa Private Equity for $1.7bn (£1bn), the latest move by the lender to unload non-core assets.
For Paris-based Axa, the deal is part of a series of acquisitions of private equity investments originally owned by other investors, including the purchase of a $1.9bn portfolio from Bank of America in April 2010.
The portfolio comprises 207 stakes in various buyout funds as well as some direct stakes in companies.
Citi had looked to offload some of its private equity assets following its $45bn taxpayer bailout.
The New York-based lender is also seeking to focus on its core banking business.
“This sale marks the completion of a significant share of Citi Holdings’ proprietary private equity investments and demonstrates the progress the Citi Holdings team is making in reducing non-core assets on our balance sheet,” said Mark Mason, chief operating officer of Citi Holdings, the division that groups the US bank’s non-core holdings.
The portfolio does not include private equity funds that Citigroup manages or previously managed.