Citigroup has transferred the management and certain proprietary interests in its fund of funds, mezzanine funds, feeder funds and co-investment businesses to StepStone Group and Lexington Partners.
As part of the agreement, StepStone will provide ongoing management and advisory services for the CPE businesses’ USD4,000m fund of funds, feeder and co-investment funds.
Lexington will acquire a portion of Citigoup’s proprietary capital investments in the various funds and provide oversight for the co-investment portion of the CPE businesses.
The CPE businesses, which include investments in private equity funds, co-investments in buy-outs and mezzanine investments in middle market companies, are managed by professionals who have invested approximately USD2,000m on behalf of Citigroup’s proprietary accounts and approximately USD8,000m for third-party clients.
