Friday, 24 June 2016
Last updated 5 hours ago
Feb 6 2013 | 2:19pm ET
Citigroup has renamed an internal hedge fund business as it prepares to spin it off to comply with the Volcker rule.
The bank has redubbed Citi Capital Advisors Napier Park Global Management. The name refers to a 16th century Scottish mathematician, John Napier, who discovered logarithms.
Citi said last year that it would spin off CCA, giving a 75% stake in the unit to its management and employees. Citi will retain a 25% stake in the business.
"We are very pleased with the progress we have made as we prepare to officially launch Napier Park as an independent asset-management firm in the coming months," CCA co-head James O'Brien said. "The support of our investors has been overwhelmingly positive and we are grateful for their partnership."
Citi has already won regulatory approval for the move, mandated by the Volcker Rule's strict limits on banks' participation in the hedge fund industry, and is nearly finished gaining the assent of investors and counterparties, it said.
Once the spinout is complete, the unit soon to be known as Napier is expected to have $6.8 billion in assets under management.