7.3 billion - Citigroup

Investments in Alternative Investment Funds that CalculateNet Asset Value per ShareThe Company holds investments in certain alternativeinvestment funds that calculate net asset value (NAV) per share,including hedge funds, private equity funds, funds of funds andreal estate funds. The Company‘s investments include coinvestmentsin funds that are managed by the Company andinvestments in funds that are managed by third parties.Investments in funds are generally classified as non-marketableequity securities carried at fair value.The fair values of these investments are estimated using theNAV per share of the Company‘s ownership interest in thefunds, where it is not probable that the Company will sell aninvestment at a price other than NAV.In millions of dollars at March 31, 2012FairvalueUnfundedcommitmentsRedemption frequency(if currently eligible)monthly, quarterly,annuallyRedemptionnotice periodHedge funds $1,244 $ — Generally quarterly 10–95 daysPrivate equity funds (1)(2)(3) 957 431 — —Real estate funds (3)(4) 216 158 — —Total $ 2,417 (5) $ 589 — —(1) Includes investments in private equity funds carried at cost with a carrying value of $7 million.(2) Private equity funds include funds that invest in infrastructure, leveraged buyout transactions, emerging markets and venture capital.(3) This category includes several real estate funds that invest primarily in commercial real estate in the U.S., Europe and Asia.(4) With respect to the Company‘s investments that it holds in private equity funds and real estate funds, distributions from each fund will be received as theunderlying assets held by these funds are liquidated. It is estimated that the underlying assets of these funds will be liquidated over a period of several years asmarket conditions allow. While certain investments within the portfolio may be sold, no specific assets have been identified for sale. Because it is not probablethat any individual investment will be sold, the fair value of each individual investment has been estimated using the NAV of the Company‘s ownership interest inthe partners‘ capital. Private equity and real estate funds do not allow redemption of investments by their investors. Investors are permitted to sell or transfer theirinvestments, subject to the approval of the general partner or investment manager of these funds, which generally may not be unreasonably withheld.(5) Included in the total fair value of investments above is $0.5 billion of fund assets that are valued using NAVs provided by third-party asset managers. Amountsexclude investments in funds that are consolidated by Citi.Under The Dodd-Frank Wall Street Reform and ConsumerProtection Act of 2010 (Dodd-Frank Act), the Company will berequired to limit its investments in and arrangements with―private equity funds‖ and ―hedge funds‖ as defined under thestatute and impending regulations. Citi does not believe theimplementation of the fund provisions of the Dodd-Frank Actwill have a material negative impact on its overall results ofoperations.115CITIGROUP – 2012 FIRST QUARTER 10-Q