Citigroup to Divest Its Wealth Alternatives Unit to iCapital

Citigroup Inc. C agrees to divest Citi Global Alternatives, LLC (“Citi Global Alternatives”), to iCapital. Citigroup’s Global Alternatives is the advisor to Citi Wealth’s global alternative investment fund platform.

The move comes as Citigroup is making efforts to simplify its business operations. Terms of the transaction are kept under wraps.

Details of the Citigroup Planned Divestiture

The Citi Global Alternatives unit represents more than 180 funds distributed globally. It includes investment vehicles across a diverse range of alternative investment strategies and asset classes, including private equity, growth equity, private credit, infrastructure, venture capital, real estate and hedge funds.

With this transaction, iCapital will manage and operate the fund platform, while Citigroup remains the distributor of funds and will continue offering supervision to its clients on the role of alternative investments within a diversified investment strategy.

By acquiring Citigroup’s Citi Global Alternatives unit, iCapital will enhance its Wealth’s global sales capabilities with a dedicated alternative investment specialist team, equipping advisors with more resources focused on pre-sale, sale and post-sale investment activities. 

Daniel O’Donnell, Head of Citi Wealth Alternatives and Investment Manager Solutions, stated, “Citi Wealth already has a strong working relationship with iCapital on alternative solutions, and we’re excited to expand our relationship to bring greater integration of iCapital’s market-leading digital capabilities to our advisors, bankers, investment counselors and clients.”

Citigroup’s Prior Efforts to Simplify Business

In December 2024, C completed its separation from the institutional banking business in Mexico from its consumer, small and middle-market businesses. With this, Citigroup will now operate two separate financial groups in Mexico — Grupo Financiero Citi México and Grupo Financiero Banamex. C is preparing for a planned IPO of its consumer, small business and middle-market banking operations in Mexico, and has restarted the sales process for the consumer banking business in Poland.

In September 2024, Citigroup agreed to divest its global fiduciary and trust administration services business, Citi Trust, to JTC, one of the global professional services providers, for $80 million. This strategic move aligns with the bank’s focus on concentrating resources in areas that drive growth in its wealth business.

Through this strategic exit, C will enhance its focus and boost its operational efficiency within its key business segments.

Citigroup’s Price Performance & Zacks Rank

C shares have gained 11.6% over the past six months against the industry’s growth of 4.6%.

Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Moves by Other Finance Stocks

In March 2025, HSBC Holdings’ HSBC U.K. division, HSBC UK Bank plc, announced the sale of its private client trust business — HSBC Trust Company (UK) Limited — to Ludlow Trust. The financial terms of the transaction have not been disclosed.

The decision reflects HSBC’s strategic focus on simplifying the business. Employees of HSBC Trust Company have joined the expanded Ludlow Trust group. The name of the firm has been changed to Ludlow Trust Company (Southampton) Ltd.

In February, Navient NAVI completed the divestiture of its Government Services business (“NGS”) to Gallant Capital Partners.

NGS includes Navient Business Processing Group, Duncan Solutions, Gila (D.B.A. Municipal Services Bureau), Pioneer Credit Recovery and Navient BPO. As part of the deal, around 1,200 employees were transferred to Gallant Capital, and NAVI fully exited the business processing solution space.

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This article originally published on Zacks Investment Research (zacks.com).

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