This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Axa Remains Hungry for Bank Assets

NEW YORK ( TheStreet)-- Axa Private Equity is scoping out other U.S. banks for potential deals after its $1.7 billion acquisition of private equity assets from Citigroup (C - Get Report) announced Wednesday.



Some of the assets that Axa Private Equity is buying include stakes in KKR (KKR), The Blackstone Group (BX), Carlyle Group, and First Data Corp. , Axa confirmed. Benoit Verbrugghe, head of AXA Private Equity U.S. and Vincent Gombault, member of the board at AXA Private Equity, said that Axa plans to hold onto the stakes for at least three years.

Axa Private Equity has been gradually scooping up private equity assets from banks who are looking to unload them to comply with the Volcker Rule which is legislation that limits banks' proprietary trading. Axa op purchase $1.9 in assets from Bank of America (BAC - Get Report) in April 2010 and also acquired assets from Natixis in July 2010.

"Our strategy is to grow through acquiring assets of U.S banks, European banks and pension funds in the U.S. and in Europe," Gombault said. "We are only interested in private equity assets. Not mortgages. We are currently in talks with more institutions. "

The sale is part of Citigroup's overall strategy to trim down its assets in Citi Holdings. In 2010 Citigroup sold $100 billion in assets. As of March 31, 2011, Citi has reduced assets within Citi Holdings by$490 billion since 2008 and has completed more than 60 divestitures since the end of 2007, a Citigroup spokesperson confirmed. The assets in Citi Holdings are now $337 billion.

"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, COO of Citi Holdings in a press release.

Citigroup has been shopping its consumer finance unit, Citi Financial. The unit is rumored to have gotten interest from Leucadia National Corp. and Centerbridge Capital Partners as bidders. Last week Citigroup shut down a hedge fund and reportedly will be looking to shut down more as it restructures.

--Written by Maria Woehr in New York.



To contact the writer of this article, click here: Maria Woehr.

To follow the writer on Twitter, go to http://twitter.com/newsgirlmw.

To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $15.81 0.00%
C $52.42 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs