Italian infrastructure fund F2i is suing American bank Citigroup claiming damages against the failed placement of an infrastructure fund in 2007, a spokeswoman from F2i told InfrastructureInvestor.com.
F2i: said to be
F2i hired Citigroup in 2007 to raise money for its infrastructure fund, which ended up closing on €1.85 billion in early 2009 with commitments from Merrill Lynch, BIIS (part of Intesa Sanpaolo), state-backed Cassa Depositi e Prestiti, Unicredit, seven Italian banking foundations and two pension funds.
But at the end of its 18-month contract with F2i, Citigroup told the Italian fund that it was unable to find any investors for the 15-year vehicle at the same time that it was raising over $3 billion for its own vehicle, reports Il Sole 24 Ore. The newspaper also writes that Citigroup had promised to raise up to €1 billion for F2i, including a €100 million investment from the bank itself.
Citigroup said in a statement that it would “vigorously defend” itself, adding that “the lack of international investment in the F2i fund was due to a complex number of factors completely independent from, and unrelated to, the work done by Citi during the course of two years”.
F2i, together with Paris-based investor AXA Private Equity, bought an 80 percent stake in gas utility Enel Rete Gas in the summer of 2009 for €480 million.