Citi, Citi Vets Launch Managed Accounts Platform

Sep 10 2010 | 12:09pm ET

A group of former Citigroup employees have raised €400 million for a new Citi-backed hedge fund managed account platform.

London-based Ivaldi Capital said it raised the money from a single European pension fund. Citi, which owns a minority stake in the new firm, said Ivaldi hoped to raise as much as €2 billion by the end of the year. Ivaldi eventually plans to open offices in both the U.S. and Asia.

“This is the only platform providing a comprehensive solution for institutional investors interested in accessing alpha-generating investments, but lacking the necessary infrastructure to support them,” Nick Roe, head of Citi’s prime brokerage, said.

Ivaldi is led by several former Citi bankers, among them Will Potts, formerly head of prime finance sales in Europe. The new firm will help institutional investors pick both existing hedge fund managers as well as seeding new ones.

The roots of Ivaldi lie in a two-year old mandate from Danish pension fund ATP. Citi established a platform called AlphaOne for the pension. Citi will serve as the new firm’s prime broker, administrator and custodian, while Ivaldi will offer similar middle- and back-office services to the hedge funds it seeds. It will also provide risk management, portfolio construction and manager selection services to clients.

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