Ex-Citi Alts. Chiefs Set Up Hedge Fund, Private Equity Investment Vehicle

Nov 6 2007 | 10:49am ET

Two former Citi Alternative Investments chiefs are looking to give institutional investors a piece of the booming alternative investment industry.

Michael Carpenter, the former Citigroup investment banking chief, is reportedly setting up a $1 billion fund that will invest in hedge funds and private equity firms. Joining him in the new endeavor is Dean Barr, who left CAI earlier this year after Citi bought hedge fund Old Lane Partners and installed its founder, Vikram Pandit, as its new alternatives chief.

Southgate Alternative Investments Strategies plans to take minority stakes in at least 10 managers, focusing on firms with at least $3 billion in assets under management. In particular, it is looking at hedge funds investing in Europe and Asia. No one investment will exceed 25% of the firm’s portfolio.

In addition to Carpenter and Barr, the new firm boasts as partners former Credit Suisse investment bank CFO Barbara Yastine, Qtrade Finanical Group co-founder Josephen Meehan and former Mikronite Technologies Group CEO Jeffrey Coats. The principals will invest about $10 million in the firm.

Soutgate will charge a 2% management fee, and share 15% of all profits above 8% per year.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.