As a part of its recent announcement that it would shed up to $500 billion in assets, Citigroup will be winding down some of its investment funds acquired over the past few years. Sources inside the world’s largest bank (ranked by assets) say that one divestment coming soon will be United Kingdom-based debt buyer Cabot Financial.

Citigroup (NYSE: C) will be looking to wind down some of the investments it has made through acquired investment banks, including Nikko Principal Investments (NPI), a U.K. and Australian-based private equity business. Citigroup acquired NPI’s parent, Nikko Cordial, last year.

One of NPI’s largest investments is debt buyer and collection agency Cabot Financial, which it bought for nearly $480 million in 2006 (“UK's Leading Debt Purchaser Acquired for $479 million,” April 10, 2006). A source inside Citigroup told U.K. paper The Independent that Cabot would be one of the business divested by NPI.

The move is part of Citigroup’s announced plan to shed non-core assets in the next couple of years (“Citi to Shed $500 Billion in Assets,” May 9).

Kent, England-based Cabot is one of the largest debt buyers in Europe, employing nearly 400 people.