Citigroup moves deeper into PE industry

There was a time when people were up in arms about investment banks entering the private equity industry. They were accused of competing with their top customers--a fair enough charge. A few were even persuaded to get out of the game. Others, notably Goldman Sachs, stuck with it. That turned out to be the right move. The emerging business model stresses investing alongside clients, not against them. In this era of private equity club deals, that makes a lot of sense. It seems to be in vogue. Case in point: Citigroup said it has raised $3.3 billion for a new fund, Capital Partners II, from clients, employees and the bank itself. It will invest with the financial firms that it advises.

For more:
- here's a NYT article