New York:Citigroup will sell its hedge fund business with $4.2 billion of assets to alternative investment firm SkyBridge Capital, as part of an effort to shed its non-core assets.
However, financial terms of the deal were not disclosed.
“Citigroup said it will sell its hedge-fund business to alternative investment firm SkyBridge Capital,” the alternative investment firm said in a statement on Wednesday.
The deal includes Citi Alternative Investment LLC’s fund of hedge funds, hedge fund seeding and hedge fund advisory businesses, it added.
The transaction would position SkyBridge as “one of the leading global alternative asset managers,” with $5.6 billion in assets under management.
“The integration of a fund of hedge funds business is a natural fit with the SkyBridge platform,” SkyBridge managing partner Anthony Scaramucci said.
Raymond Nolte, who has been at the helm of Citi Alternative Investment since its inception in 2005, would join SkyBridge as a managing partner and chief investment officer.
He would be taking a team of over 20 professionals to SkyBridge, which focuses on acquiring stakes in hedge funds and other asset managers.
Citigroup, in which the US government holds a 27 per cent stake following a bailout in 2008, is understood to be shedding almost a third of its holdings of about $1.86 trillion under regulatory pressure to shrink.
Last year, Citi earmarked $715 billion in non-core assets to be sold.