Citigroup is in advanced talks to sell its USD 4-billion hedge fund business to

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US-based SkyBridge Capital, says a media report.

Attributing to people familiar with the plan, The Wall Street Journal reported SkyBridge Capital is in advanced talks to buy Citi's hedge fund business with about USD 4 billion in assets.

According to the publication, the assets Citi plans to sell include about USD 1 billion of hedge funds, USD 2.5 billion in hedge-fund assets that it advises directly, and USD 500 million of investment in small hedge funds.

However, no pact has yet been signed, and the proposed sale price could not be determined, the report said.

Citi's core fund-of-fund investments gained about 21 per cent in 2009, slightly better than the average for hedge funds world-wide.

The report noted that Citi management team overseeing the assets is expected to remain in their roles as part of the deal.

Citi last year earmarked to sell USD 715 billion in non-core assets amid the global financial turmoil and the US government taking an ownership stake in the banking entity.