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AXA Private Equity acquires USD1.7 billion private equity portfolio from Citigroup

 AXA Private Equity has signed a Sale and Purchase Agreement with Citigroup (NYSE: C) for the acquisition of a USD1.7 billion portfolio of limited partnership interests in private equity buyout funds and a portfolio of direct stakes in companies. This deal represents one of the largest ever secondary private equity transactions and confirms AXA Private Equity’s world leadership in secondary Funds of Funds.

The portfolio sold by Citi Holdings comprises 207 limited partnership interests in mostly buyout 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 impact client or employee funds managed or formerly managed by Citi.

Following on from AXA Private Equity’s USD1.9 billion acquisition of private equity funds from Bank of America in April 2010, this transaction continues the firm’s secondary funds strategy to offer liquidity to large institutions looking to monetize their private equity investments.

Dominique Senequier (pictured), Chief Executive Officer of AXA Private Equity, said: "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."

"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," says Mark Mason, Chief Operating Officer of Citi Holdings. "Citi remains focused on directing resources to our core franchise to generate long-term growth opportunities."

Vincent Gombault, Member of the Board and Managing Director Funds of Funds at AXA Private Equity, says: "Having an international team with global reach, combined with a diversified buyout interests portfolio gives us excellent perspective on pricing and quality, allowing us to be opportunistic on behalf of our investors. The Citigroup assets are some of the best-managed funds offering strong potential in terms of value creation."

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