Citigroup is in advanced talks to sell its fund-of-funds business to SkyBridge Capital, a New York alternative-asset manager led by two alumni of Goldman Sachs, the Wall Street Journal reports, citing people familiar with the matter.
An agreement has yet to be signed and the proposed sale price couldn't be determined, the Journal adds.
Citigroup is selling assets that include about $1 billion in investments farmed out to hedge funds, about $2.5 billion in hedge-fund assets on which the bank advises, and $500 million in seeding capital tied to stakes in small hedge funds, says a person familiar with the matter, the Journal reports.The business is part of the $715 billion of noncore assets that Citigroup has been looking to unload. -- Written by Joseph Woelfel in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.