Citi to sell private equity businesses

NEW YORK: Citigroup says it has agreed to transfer the management of its private equity businesses to two private equity firms.

In addition to their management, Citigroup Inc. says it is transferring ``certain proprietary interests'' in its $4 billion fund of funds, mezzanine funds, feeder funds and co-investment businesses to StepStone Group LLC and Lexington Partners.

Financial terms for the deals, expected to close in the fourth quarter, were not disclosed.

Citi says the transaction is part of its strategy to reduce noncore businesses.