Citigroup is facing fresh problems at its private-investments division over two funds that were overseen by Michael Froman, who left the bank's Alternative Investments unit in January to be a White House aide, the Wall Street Journal said.

Clients of one private-equity fund investing in infrastructure projects voted to keep it from making new investments as several major deals fell through, even as its co-head quit, while another smaller fund was shelved last year, the paper said, citing people familiar with the matter.

A Citigroup spokeswoman told the paper that the Alternative Investments unit is a highly valued part of Citi's core franchise adding that the freeze on new infrastructure investments does not derail that fund.

Citigroup and Froman could not be immediately reached for comment by Reuters.

(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Muralikumar Anantharaman)