Citigroup sells CVCI to Rohatyn Group

According to a release, the deal - which is expected to close in the fourth quarter - will see the group's global footprint expand to 18 offices worldwide with more than $7 billion in total assets under management. Of this, around $6 billion is in private equity.

This is the latest in a trio of transactions that have seen TRG broaden its Asia presence. In 2012, it acquired a 60% stake in Singapore-based mid-market infrastructure private equity firm CapAsia, while in 2011 is bought 50% of Hong Kong-headquartered PE real estate investor Arch Capital.

"The combination of CVCI's broad private equity capabilities, TRG's private investing expertise in sectors and regions of significance in emerging markets, and our proven macro investing capabilities, will make TRG one of a very few independent asset managers to whom investors can turn for broad discussion about investing across this asset class," said Nicolas Rohatyn, CEO and CIO of TRG.

Founded in 2001, CVCI is part of Citi's alternative asset management platform Citi Capital Advisors. It operates exclusively in emerging markets with a local presence in Singapore, Hong Kong, Mumbai, New Delhi, London, New York and Santiago. CVCI currently oversees five funds with $4.3 billion in equity investments and committed capital.

The sales reflects Citi's decision to shed its private equity and hedge funds to comply with the Volcker Rule - part of the 2010 Dodd-Frank financial reform legislation that restrict banks' holdings of alternative investments. Citigroup is said to have sold more than $6 billion in private equity and hedge fund assets in the past month.

Other banks have also been selling their private equity arms. J.P. Morgan said in June that its private equity unit, One Equity Partners, would become independent.

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• Topics
• Buyout
• Venture
• Asia
• Citi Venture Capital International (CVCI)
• M&A