Citigroup Inc. plans to raise more than $3 billion for its private-equity and hedge funds, a person familiar with the matter said Friday.
Citi Capital Advisors, Citigroup’s alternative asset management platform, may seek $1.5 billion for private equity this year and $750 million for hedge funds, and an additional $1 billion of fundraising for hedge funds is targeted next year, this person said. Citi Capital Advisors currently oversees assets of about $14 billion.
The person familiar with Citigroup’s fund raising plans did not elaborate on how the money might be invested.
The plans, which were reported earlier by Bloomberg, come as U.S. lawmakers are considering a proposal that would bar commercial banks from making speculative trading in derivatives for their own accounts. The proposed rule, named after former Federal Reserve Chairman Paul Volcker, would also cap the size of big banks and force them to divest their hedge fund and private equity units.
A Citigroup spokesman said, "regardless of the ultimate outcome of financial reform, our priority will always be protecting the interests of our clients, who have selected us to be the fiduciary manager of their assets, and ensuring the soundness of the CCA platform moving forward."