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Citigroup Said to Weigh Sale of $1 Billion in Buyout-Fund Stakes

Citigroup Inc., which is scaling back illiquid investments to comply with rules that limit risk-taking by banks, may sell about $1 billion in holdings managed by its former private-equity business, according to five people familiar with the matter.

The bank is considering selling its stakes in funds managed by Citi Venture Capital International, or CVCI, a private-equity manager that Citi sold to New York-based Rohatyn Group in December, said the people, who asked not to be identified because the talks are private. Rohatyn plans to give investors in two CVCI funds the option to sell their holdings to other buyers, who would provide fresh capital for new deals, said one of the people.