Reuters: Regulatory News: UPDATE 1-Citigroup to sell private equity fund to Rohatyn Group

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Kindle Book Deals We find the best deals on best-selling Kindle books for you. Just tell us which genres you love and we'll do the rest. The best part? It's completely free! From our sponsors

UPDATE 1-Citigroup to sell private equity fund to Rohatyn Group Sep 3rd 2013, 12:53 Tue Sep 3, 2013 8:53am EDT Sept 3 (Reuters) - Citigroup Inc said it will sell a $4.3 billion private equity fund, known as Citi Venture Capital International, for an undisclosed price to investment firm Rohatyn Group. Rohatyn will have over $7 billion in assets under management after the deal, which is expected to close in the fourth quarter, the company said in a statement. Rohatyn Group is a private-equity fund with a focus on emerging markets. It is run by Nick Rohatyn, son of financier Felix Rohatyn. News of the sale was first reported by the Wall Street Journal. Citigroup has sold more than $6 billion in private equity and hedge fund assets in the past month to comply with new regulations that limit such investments, the Wall Street Journal reported, citing people familiar with the transactions. After the recent deals, Citi Capital Advisors, which manages hedge-fund and private-equity assets, will have only one fund -- the $2.5 billion North American private equity fund Metalmark Capital. The bank is trying to sell that fund to its management, sources told the paper. () The sales reflect Citi's decision to shed its private equity and hedge funds to comply with new regulations that restrict banks' holdings of alternative investments. The private equity business has become less appealing in general to banks because of the 2010 Dodd-Frank financial reform law. The "Volcker rule", part of the Dodd-Frank law, prohibits banks from investing in any fund they do not manage. The rule is expected to be implemented in a few years. Other banks have also been selling their private equity arms. JPMorgan Chase & Co said in June its private equity unit, One Equity Partners, would become independent. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions