Lexington Partners Acquires Citi’s Interest in Fund of Funds, Mezzanine and Co-Investment Funds
27 Oct 2010
One Equity Partners to become independent from JPMorgan Chase
New York – October 27, 2010
Lexington Partners (“Lexington”) today announced it has completed the purchase of a portion of Citi’s proprietary interests in certain fund of funds, mezzanine and co-investment funds (“CPE”). This transaction was part of Citi’s announced strategy to reduce the assets and businesses within Citi Holdings, Citi’s portfolio of non-core operating businesses and assets.
This transaction, first announced on July 13, 2010, reduced GAAP assets in Citi Holdings by approximately $1.1 billion and was funded from Lexington Partners’ discretionary capital under management. As part of the transaction, Lexington Partners will provide ongoing oversight for the co-investment funds along with StepStone Group LLC (“SSG”), a provider of customized private equity investment management and advisory services. The majority of the former CPE professionals have joined SSG and they will provide ongoing management and advisory services for certain of CPE’s $4 billion fund of funds, mezzanine, feeder and co-investment funds.
Brent Nicklas, Managing Partner of Lexington, said, “With our substantial discretionary capital, longstanding private equity sponsor relationships and extensive secondary and co-investment experience, we were able to close this significant acquisition within 90 days of signing. This portfolio was assembled over the past 10 years and reflects the strength of Citi’s global private equity client relationships. We are pleased to be an investor in these high quality assets managed by a variety of leading private equity sponsors around the world.”
