Citigroup sells hedge-fund business to SkyBridge Capital
15 Apr 2010
Continuing with its strategy of shedding non-core assets, global banking giant Citigroup Inc yesterday announced the sell-off of its hedge-fund business to asset management firm SkyBridge Capital LLC (SkyBridge) for an undisclosed sum.
SkyBridge will buy Citi Alternative Investment's hedge-fund, hedge-fund seeding and hedge-fund advisory businesses, SkyBridge said in a statement without revealing the financial terms of the deal.
New York-based SkyBridge, founded in 2005, is a leading independent asset manager focused solely on hedge-funds.
The assets being acquired are valued at $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 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 maximise value for investors,'' said Skybridge managing partner Anthony Scaramucci.
Citi Alternative Investments are part of Citi Holdings, which is made up of Citi's non-core assets that the financial services giant is in the process of shedding.
