Sunday, 23 October 2016
Last updated 1 day ago
Apr 14 2010 | 11:18am ET
Hedge fund seeder SkyBridge Capital will buy Citigroup’s fund of hedge funds business, instantly boosting its assets under management fourfold.
The New York-based firm will add Citi Alternative Investments’ fund of funds, hedge fund seeding and advisory businesses, with a combined $4.2 billion in assets under management or advisory. More than 20 Citi employees, including the head of the business, Raymond Nolte, will join SkyBridge.
Terms of the deal were not disclosed.
“The integration of a fund of hedge funds business is a natural fit with the SkyBridge platform,” founder Anthony Scaramucci said. “Citi’s proven investment capabilities and comprehensive suite of fund of funds products combined with our entrepreneurial culture, marketing, risk management and operational expertise creates an entity with significant growth potential.”
Citi is under pressure by the federal government to sell off its non-core businesses, including the fund of funds businesses. Last month, it sold its real-estate investment business to private equity firm Apollo Management, and still plans to sell its private equity unit.