Filed under: Raising money, Investments
Still losing money by the billions, Citigroup (NYSE: C) has been scrambling to raise capital. Foreign investors have been welcome investors, and the bank has cut jobs and raised fees in a major effort to maintain liquidity. This day, Private Equity Hub is reporting that Citi might sell some of its private equity interests as part of that effort.
Apparently, Citi is considering selling two private equity holdings. The first involves $1 billion in investments held by Nikko Cordial, a Japanese brokerage firm that Citi acquired last year. The other private equity interest is in Court Square Capital Partners, in which it holds a roughly $400 million stake.
An interesting question about this is who will benefit most from this. Yesterday, Caryle’s Louis Gerstner said that the current private equity slowdown offers the biggest players excellent opportunities to increase their investments as weaker investors panic and sell their stakes. Will panicked Citi be selling its investments on the cheap?
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