Dan Primack

The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley

Citi profits hurt by private equity performance

October 18, 2010: 10:28 AM ET

Citigroup (C) today bested analyst expectations by reporting $2.15 billion in Q3 net income. For context, the mega-bank lost $3.24 billion during the same period in 2009.

One dark cloud, however, was a negative $8 million mark in its brokerage and asset management business (compared to a positive $141 million in Q2 2010). Citi said the drop "was mainly due to mark-downs on private equity investments."

You might recall that Citi sold around $1 billion in private equity interests this past summer to Lexington Partners, which represented approximately one-third of Citi's private equity assets. Since then, I've been hearing rumors that Citi has engaged in informal talks to sell a bunch more of its portfolio, which is said to include a bunch of mega-fund positions.

Got to wonder if the earnings drag makes Citi a motivated seller, or if it slows down until portfolio valuations rebound…

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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