Citigroup sells PE portfolio to AXA Private Equity for $1.7 billion

Citigroup has sold its $1.7 billion portfolio of limited partnership interests in private equity buyout funds as also direct stakes in companies to AXA Private Equity, a European diversified private equity firm.
 
The Citi-AXA deal is one of the largest secondary private equity transactions.
 
The portfolio sold by Citi Holdings comprises 207 limited partnership interests, mostly buyouts, and a number of investments that were made directly into certain companies.

The portfolio was funded by Citigroup proprietary capital and does not include funds or investments managed by Citi Capital Advisors.

The transaction also does not include client or employee funds managed or formerly managed by Citi.

AXA Private Equity had, in April 2010, acquired $1.9 billion of investments in private-equity funds from Bank of America.

"This is the culmination of a highly collaborative and close working relationship with Citigroup. Because of our approach, combined with our proprietary database, we were able to offer a global solution to Citi.

The excellent visibility of the quality of the assets enabled us to offer a fair price,"  Dominique Senequier, CEO of AXA Private Equity, said.

"This sale marks the completion of a significant share of Citi Holdings' proprietary private equity investments and demonstrates the progress the Citi Holdings team is making in reducing non-core assets on our balance sheet," said Mark Mason, COO of Citi Holdings.

"Citi remains focused on directing resources to our core franchise to generate long-term growth opportunities."

France-based AXA Private Equity has around $25 billion of assets under management.