Sun, Aug 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Skybridge to acquire Citi hedge fund business, will make SkyBridge a $5.6bn firm

Wednesday, April 14, 2010
Opalesque Industry Updates - Citigroup Inc. said it will sell its hedge-fund business to alternative-investment firm SkyBridge Capital LLC, as it sheds yet another of its noncore assets.

Financial terms of the deal, in which SkyBridge will buy Citi Alternative Investments' hedge-fund, hedge-fund seeding and hedge-fund advisory businesses, weren't disclosed. CAI's investments under management and advisory total $4.2 billion. SkyBridge said the deal will position it as "one of the leading global alternative asset managers" with $5.6 billion in assets under management.

The businesses being acquired are part of Citi Holdings, which is made up of Citi's noncore assets and businesses that the financial-services giant is in the process of unloading. Citi's Raymond Nolte, who has led the businesses at CAI since 2005, will become chief investment officer and a managing partner at SkyBridge, bringing with him a team of 20.

"The integration of a fund-of-hedge-funds business is a natural fit with the SkyBridge platform, and this deal is a result of our long-term strategy to acquire assets that maximize value for investors," said Skybridge Managing Partner Anthony Scaramucci.

Citi last year earmarked $715 billion in noncore assets to be sold, liquidated or wound down as it sought to reduce its risk profile during the market meltdown that saw the U.S. government take a roughly one-quarter ownership stake currently at 27%. Roughly one-quarter of those assets had been shed by the end of 2009.

Shares of Citigroup rose 2.2% to $4.72 in recent premarket trading amid the release of strong first-quarter results from rival J.P. Morgan Chase & Co.

Corporate website: Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge funds suddenly find real money is back in Argentina's debt, Elon Musk buys more SolarCity stock following hedge fund manager short, BlackRock plans to get into rental-home financing[more]

    Hedge funds suddenly find real money is back in Argentina's debt From Bloomberg.com: The real money is back in Argentina. Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorit

  2. Activist News - Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping, Meet Europe's best activist investor[more]

    Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping From Businessinsider.com: Carl Icahn has picked his next target: Freeport-McMoRan. Icahn and a group of other investors have snapped up an 8.46% stake in mining company Freeport-McMoRan, according to a j

  3. North America - Hedge fund manager Ray Dalio’s challenge to the Fed[more]

    From Newyorker.com: For some reason, Janet Yellen, the chair of the Federal Reserve, decided to skip this year’s annual Fed conference in Jackson Hole, where monetary policymakers from the United States and abroad get together with some prominent academics to discuss the big issues of the moment. Th

  4. Opalesque Exclusive: Credit-focused hedge fund Numen Capital expects more volatility in Europe in coming months[more]

    Benedicte Gravrand, Opalesque Geneva: A London-based hedge fund, which has just hired two emerging managers, is cautious on Europe. Vassilis Paschopoulos and former Lehman’s colleague Nikos Kargadouris, launched a London-based credit-focused hedge fund called

  5. Performance - Hedge funds bruised by stocks’ meltdown, Capstone’s volatility hedge fund is having a monster month thanks to market mayhem[more]

    Hedge funds bruised by stocks’ meltdown From WSJ.com: Hedge-fund managers like to promise their investors protection from market swings. In the recent stock swoon, many were caught off guard. Billionaire managers such as Leon Cooperman, Raymond Dalio and Daniel Loeb are deeply in the red

 

banner