Monday, 22 December 2014
Last updated 17 hours ago
Jul 10 2012 | 11:56am ET
Citigroup hopes to raise as much as $75 million for a new collateralized loan obligation hedge fund—without contributing a dime itself.
Citi's hedge fund unit, Citi Capital Advisors, plans to launch a fund that will invest in the riskier portions of CLOs. The fund will be managed by former Lehman Brothers CLO trader Serhan Secmen.
But while more than a quarter of CCA funds' assets belong to Citi, the bank won't be an investor in Secmen's fund. The bank is trying to replace some of the $5 billion it has in CCA funds with outside capital to come into compliance with the new Volcker rule, which strictly limits the amount that banks can invest in hedge funds.
Citi plans to allow CCA employees to acquire pieces of the business. But Secmen's fund will give Citi a good idea of whether investors are willing to put their money up without the bank doing so.
CCA hopes to raise between $50 million and $75 million for the fund.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.