Citi Buys Private Equity Firm Spun Off From Morgan Stanley

Dec 11 2007 | 10:46am ET

Citigroup’s alternative investments division is looking more and more like Morgan Stanley's every day. The largest bank in the U.S. agreed to buy Metalmark Capital Partners—the private equity firm formerly known as Morgan Stanley Capital Partners—yesterday. It is the third acquisition of an alternative investment firm by Citi this year, and it’s also the third run by Morgan Stanley alumni.

Metalmark, which focuses on middle-market healthcare, industrial and energy investments, spun out of Morgan Stanley in 2004. It is led by Howard Hoffen, who joins Citi as a managing director. Terms of the deal were not disclosed.

In an internal memorandum, Citi Alternative Investments CEO John Havens—another Morgan Stanley veteran—said Metalmark fills “a product gap” in “developed market” deals.

Over the course of this year, Citi has also bought fixed-income hedge fund Carlton Hill Capital—founded by Morgan Stanley alums James O’Brien and Jonathan Dorfman—and Old Lane, the hedge fund founded by Havens and Vikram Pandit, the former Morgan Stanley executive widely tipped to be named Citi’s next CEO.


In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Artivest Announces Funding Round Led by KKR & Co.

May 4 2015 | 9:56am ET

Artivest, a startup that provides individual investors with access to private equity...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note