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Citigroup Reportedly Seeks $3B for Funds

Citigroup is reportedly planning to raise more than $3 billion for its private-equity and hedge funds.

NEW YORK (

TheStreet

) --

Citigroup

(C) - Get Report

is reportedly planning to raise more than $3 billion for its private-equity and hedge funds.

Citi Capital Advisors, which oversees about $14 billion, may seek $1.5 billion for private equity this year and $750 million for hedge funds,

Bloomberg

reports, citing people with direct knowledge of the plan. An additional $1 billion is targeted next year for hedge funds.

Citigroup's plan comes about even as U.S. lawmakers consider banning banks from owning and investing in so-called alternative funds,

Bloomberg

notes.

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Citigroup has about $5 billion of its own money in Citi Capital Advisors funds, according to

Bloomberg

.

Citigroup's reason for investing in the funds is to "seed" new ones, people close to the matter told

Bloomberg

. Putting in its own money also helps attract investors by signaling Citigroup has confidence in the management teams, the people said.

More on Citi Citigroup's Profit Plan

-- Reported by Joseph Woelfel in New York.

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