France's Axa Private Equity said Wednesday it agreed to buy a $1.7 billion private equity portfolio from Citigroup Inc. as the big U.S. bank sheds some of its non-core businesses.
Terms of the deal announced were not disclosed.
The portfolio includes 207 limited partnership interests in private equity buyout funds and a portfolio of direct stakes in companies. It does not include funds or investments managed by Citi Capital Advisors.
Citi, and other banks hard hit by the financial meltdown in 2008 and subsequent downturn, have been selling off some assets to reduce noncore businesses.
"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," said Mark Mason, chief operating officer of Citi Holdings.
Axa has been buying up private equity portfolios, including a $1.9 billion portfolio from Bank of America in April 2010.
Citi shares fell 26 cents to $37.32 in pre-market trading.