Citigroup To Launch $3.5 Billion Fund For Buyouts

Citigroup Inc.'s private equity arm is looking to raise a $3.5 billion fund to aid in finance acquisitions by leveraged buyout firms. Citigroup Alternative Investments has already raised roughly $2 billion from the bank and employees, and it plans to

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Citigroup Inc.’s private-equity arm is looking to raise a $3.5 billion fund to aid in finance acquisitions by leveraged buyout firms.

Citigroup Alternative Investments has already raised roughly $2 billion from the bank and employees, and it plans to solicit another $1.5 billion from investors, including reported investments from the Oregon Public Employees Retirement Fund, The Boston Globe reports.

By teaming with LBO firms on their own investments, Citigroup may be hoping to escape criticism that it is competing against its investment-banking clients for takeovers.

JPMorgan Chase shed its buyout unit last year after receiving complaints from clients, including Texas Pacific Group, that it was putting its own interests ahead of those of its clients.

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