Citigroup is all set to sell a portfolio of $900m private-equity investments to New York-based Lexington Partners, as part of its initiative to offload more than $500bn of non-core assets.

The Private-equity investments that Citigroup is selling are part of Citi Private Equity unit, which was put up for sale in 2009.

Under the agreement, Citi is expected to sell a wide range of private-equity investments to Lexington, including an interest in Citigroup Capital Partners II.

California-based private-equity adviser StepStone Group has been hired to manage the Citi funds, while Lexington would purchase the underlying assets in the funds.

Earlier, Citigroup, which was bailed out by US government during the financial crisis, agreed to sell a hedge-fund unit including $4.2bn of assets to SkyBridge Capital. Citi has also agreed to sell its real estate investment unit Citi Property Investors to Apollo Management.