Citi looks to raise $3 billion for funds: source

Citigroup Inc is looking to raise more than $3 billion for private equity and hedge funds this year, a person familiar with the matter said.

The fund-raising comes even as legislators consider a new law that would force banks to shed their private equity and hedge fund businesses.

Citi Capital Advisors, a unit of Citigroup, may seek $1.5 billion for private equity and $750 million for hedge funds, the source said.

Citi hopes to raise an additional $1 billion for its hedge funds next year, the source said.

Citi Capital Advisors is an alternative asset management unit that offers strategies and products to select institutional and ultra high net worth investors.

Citigroup, responding to a request for comment, said in a statement, Regardless of the ultimate outcome of financial reform, our priority will always be protecting the interests of our clients, who have selected us to be the fiduciary manager of their assets, and ensuring the soundness of the CCA platform moving forward.

News of the fund-raising was originally reported by Bloomberg.

(Reporting by Dan Wilchins, additional reporting by Sakthi Prasad in Bangalore; editing by John Wallace)