Carlyle Group LP (Nasdaq: CG) is selling off the last of its stake in Boston Private Financial Holdings Inc. (BPFH).

BP Holdco, an affiliate of the private equity firm, plans to sell an ownership stake of roughly 4.7 percent, or 3.8 million shares. That equates to about $42 million of stock in the Boston company through a secondary offering, Boston Private announced Tuesday.

Carlyle has been reducing its stake in the $6 billion-asset company this year. In April, Boston Private agreed to buy back the preferred shares it issued to the private equity firm for roughly $70 million. A month later, Carlyle sold about $40 million of Boston Private common stock.

In 2008, Carlyle invested $75 million to become Boston Private's biggest shareholder. The firm held a stake of just under 10% on March 31, according to Boston Private's 2012 annual report.

Citigroup (NYSE: C) and Sandler O'Neill are co-managing the latest sale.

Chris Cumming reports for Mergers & Acquisitions' sister publication American Banker.

Financial services industry