Citigroup 'plans to raise $3b' for funds

Move despite new US rule to avoid bailouts by curbing risk-taking

NEW YORK - Citigroup Inc plans to raise more than $3 billion for its private-equity and hedge funds, even as US lawmakers consider banning banks from owning and investing in so-called alternative funds, people with direct knowledge of the plan said.

Citi Capital Advisors (CCA), which oversees about $14 billion, may seek $1.5 billion for private equity this year and $750 million for hedge funds, said the people, who declined to be identified because the plans aren't public.