Citigroup in talks to sell hedge fund business
CITIGROUP is in advanced talks to sell its $4bn (€3bn) hedge fund business to SkyBridge Capital, a New York firm that invests in start-up fund managers, it was reported yesterday.
Hammered by the credit crisis and bailed out by taxpayers in 2008, Citigroup said last year it would get rid of billions of dollars worth of businesses outside its core commercial banking and capital markets activities.
Among the assets for sale is Citi's hedge fund business, which includes about $1bn invested in hedge funds, $2.5bn in hedge funds that it manages and $500m worth of stakes in small hedge funds.
SkyBridge has emerged from preliminary rounds as the final, exclusive bidder.
An agreement is expected to be reached by the middle or end of next week. But no formal agreement has been negotiated yet and the talks could still fall apart, the source said.
Citigroup spokeswoman Shannon Bell was not available for comment. SkyBridge declined to comment on the deal.
The deal would not include Old Lane Funds, a hedge fund business launched by Vikram Pandit in 2006 and acquired by Citigroup in April 2007, a source said.