Citi’s Private Equity ‘Club’ Underwhelmed Billionaire Members

Citigroup Inc. had what looked like the perfect way to grab a slice of the money flowing from wealthy individuals to private equity firms: playing matchmaker between its rich clients and an up-and-coming firm.

More than a decade after its 2012 launch, Citi’s experiment has ended with disappointed billionaires, a bitter legal battle and a lesson on the pitfalls of marketing private assets.

The saga revolves around the creation of the Silverfern Equity Club, the product of a partnership between Citi and Silverfern Group that was championed by Chief Executive Officer Jane Fraser back when she led Citi’s private bank. ...