CITIGROUP said yesterday it has agreed to sell its private equity unit to StepStone Group and Lexington Partners, in a deal that will reduce the bank’s assets by about $1.1bn (£725m).
America’s third-largest bank has not disclosed the terms of the deal, but reports last week suggested the unit would be sold for $900m, a slight discount on its net value.
Citigroup said the deal should close early in the fourth quarter.
The unit has a total of $10bn of assets under management, including $2bn of Citigroup funds.
StepStone will provide management and advisory services for the unit’s $4bn fund of funds, feeder and co-investment funds, while Lexington will oversee the co-investment arm.
The banks said “a significant number” of the private equity unit’s employees will move with the sale, while some will remain at Citigroup.