Citi to sell USD 1.7 bn private equity assets

NEW YORK: Citigroup Inc will sell a USD 1.7 billion portfolio of private equity assets to European buyout firm AXA Private Equity as part of a strategy to clean up its books in the aftermath of the financial crisis, says a media report.

"Citigroup has struck a deal to sell a USD 1.7 billion portfolio of private-equity assets to European buyout firm AXA Private Equity," The Wall Street Journal reported citing a source.

The deal marking the banking giant's latest divestiture is expected to be announced today, the report noted.

The portfolio consists of 207 limited-partnership interests in buyout funds, including stakes in funds owned by KKR & Co, Blackstone Group LP, Carlyle Group, Providence Equity Partners and others, as well as direct stakes in around 20 companies, it added.

These stakes are a part of the company's assets of around USD 600 billion, including troubled loan and securities portfolios that Citi earmarked for sale in 2009 as it set out to focus on core businesses after a US government bailout during the financial crisis.

The deal comes roughly a year after AXA Private Equity, a part of French insurance giant AXA SA, acquired USD 1.9 billion in private equity funds from Bank of America Corp, which has also been selling assets to reduce risk and focus on its core business.