Citigroup (C) is looking to sell $1 Billion private equity portfolio to an exclusive group of bidders, the WSJ reports. The portfolio, apparently part of the bank’s noncore assets, represents a mix of private-equity [PE] co-investments and fund positions spanning across strategies, including buyout, venture capital and debt.
[From the WSJ] “As part of the sale, Citigroup is attempting to unload a significant position in the $17.6 billion 2006 buyout fund managed by KKR & Co. (KKR). One person close to the situation told the Journal, “the bank is trying to sell both a fund interest in KKR 2006 Fund LP as well as co-investment positions alongside the fund. The biggest exposure comes from two co-investments made alongside KKR 2006, which includes an investment in Energy Future Holdings Corp., formerly known as TXU.”
Citigroup is running its own process and has sent invitations out to a handful of secondary buyers, including Pantheon, Coller Capital, Lexington Partners Inc., Partners Group AG and HarbourVest Partners LLC.
The portfolio is considered as one of the largest currently being floated by a seller in the U.S.
Citi shed 1.44%, or 6 cents, to $4.43 in recent action.