Citigroup has now sold $6bn of private equity and hedge fund assets in the past month according to the Wall Street Journal, which cited people familiar with the transactions.
The firm has made the moves to comply with the incoming Volcker Rule, which allows it to invest just three per cent of its Tier I capital in alternatives such as private equity.
Its deals so far leave it with a single fund in its Citi Capital Advisors arm, the $2.5bn North America-focused vehicle Metalmark Capital.
Citigroup has already significantly reduced its alternatives activities in the face of new regulation.
In October 2010, Lexington Partners and Stepstone Group acquired a sizeable portfolio of private equity fund stakes, including funds of funds, mezzanine funds and co-investment funds.
In June 2011, AXA Private Equity bought a $1.7bn sheaf of private equity assets from the bank in one of the largest secondary transactions of all time.
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