Citigroup To Close Private Equity Placement Division – Second Article
In a surprise move, Citigroup has decided to close its global private equity placement group, which raises money for external private equity firms. The placement group was one of the biggest and most successful in the world, according to a Private Equity News report.
A Citigroup spokeswoman told Private Equity News that “we have decided to focus our efforts on institutional fund raising for our internal funds, and are reducing our third-party fundraising operation. We will retain a core team of professionals to service our existing third-party clients,” she added.
The report says that the placement group raised more than $45bn for clients over the past five years, including many of of PPM’s.
These have included Nordic Capital, Terra Firma and Charterhouse Capital Partners.
Sources at Citigroup told Private Equity News that the bank had still been planning for the growth of the placement group until earlier this year, due to the fact that it requires such a small portion of the bank’s overall balance sheet.
The sources added that the team would be wound up within three to six months, after completing their current mandates.
It is thought that Citigroup will retain its infrastructure investors and Metalmark funds.
New York Private Placement
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