After Citigroup sold the business to emerging markets investor The Rohatyn Group in December, the investment bank Lazard is searching for bidders to acquire investor stakes in Citi Venture Capital International (CVCI).
The sale came amid pressure to offload non-core investment activities due to Dodd-Frank regulation in the US, which aims to curb high-risk investment activity among financial institutions.
Rohatyn has hired Lazard in an effort to provide liquidity to investors in CVCI’s old funds, with a buyer of these fund interests likely to provide seed capital for the CVCI team to invest in new deals, according to a person familiar with the matter. A person close to the process said the deal would work “in concert” to provide CVCI investors with liquidity and the emerging markets manager with new funds.
Two people familiar with the matter said a buyer would likely pay up to $1 billion for the fund interests and seed capital.
A person with knowledge of the situation said other investors in old CVCI funds would be given first option on the sale of their investor stakes in the funds before Citi is able to cash out. The transaction is subject to whether other investors in CVCI funds want to cash out their stakes, the person said.
Tags: Venture Capital, Venture Capital firm, Venture Capital group, Venture Capital industry, Venture Capital investment, Venture Capital Investor, Venture Capital fund, VC Funding, VC, Citigroup, The Rohatyn Group, Investment Bank, Lazard, Citi Venture Capital International, CVCI, Dodd-Frank, US, Seed Capital, Seed Funding.