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

FINalternatives Survey: We Asked Investment Pros...

Apr 2 2016 | 9:42pm ET

The data from our annual reader survey continues to roll in and provide interesting...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...