Ex-Bank CEOs Pandit, Diamond Plan Alts. Firms

Feb 12 2013 | 2:58pm ET

Their unceremonious ousters still fresh in their minds, the former CEOs of two top banks are looking to the alternative investments industry to make their comeback.

Former Citigroup CEO Vikram Pandit and former Barclays CEO Robert Diamond are mulling launching their own firms, the New York Post reports. Pandit, who founded and briefly ran a hedge fund before joining Citi in 2007, may start a private equity firm, while Diamond might launch a hedge fund.

Both men's plans remain in the very formative stages, according to the tabloid.

Diamond left Barclays under the cloud of an interest-rate rigging scandal that has marred the bank. With that apparently in mind, he's hired a public-relations chief, Sard Verbinnen & Co.'s Paul Verbinnen, in hopes of launching a hedge fund this year. Diamond, an American, might set up shop in New York after his years in London.

"Bob wants to come back to Wall Street and whether it is soon or in six months isn't clear," a source told the Post.

Pandit's return looks likely to involve a change of industry. The former Citi CEO, who left the bank in October amidst reports of disagreements with its chairman, may start a private equity firm, according to industry insiders cited by the Post. And he may be joined by John Havens, who served as Citi's president and led its alternative investments business and who left it alongside Pandit.

Pandit and Havens co-founded the hedge fund Old Lane Partners in 2006 after leaving Morgan Stanley. They sold it to Citi a year later for $800 million, when Citi installed Pandit as CEO-in-waiting. Citi shut the hedge fund down in 2008 after it suffered almost $15 billion in losses.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...