Key Takeaways
- • SkyBridge Capital has agreed to acquire the fund of hedge funds, hedge fund seeding and hedge fund advisory businesses of Citi Alternative Investments, with combined investments under management and advisory of USD4.2bn.
- • The transaction would lift SkyBridge to roughly USD5.6bn in assets under management and advisory, which it says positions the firm as one of the leading global alternative asset managers.
- • Terms of the deal were not disclosed.
- • The businesses sit within Citi Holdings, the unit housing Citi's non-core assets, and the sale aligns with Citi's effort to shrink non-core holdings while focusing on Citicorp.
- • Raymond Nolte, who has led the businesses since 2005, will join SkyBridge as managing partner and chief investment officer, bringing a team of more than 20 professionals.
Summary
SkyBridge Capital has entered into a definitive agreement to acquire the fund of hedge funds, hedge fund seeding and hedge fund advisory businesses from Citi Alternative Investments, according to Hedgeweek. The businesses carry total investments under management and advisory of USD4.2bn. SkyBridge says the transaction will position it as one of the leading global alternative asset managers, with total assets under management and advisory of USD5.6bn. Terms of the transaction were not disclosed.
The businesses are part of Citi Holdings, the segment that holds Citi's non-core assets. The sale is consistent with Citi's strategy to reduce non-core assets, manage risks tightly and optimise the value of assets in Citi Holdings, while generating long-term profitability and growth from Citicorp, which comprises its core businesses.
Raymond Nolte, who has led these businesses since 2005, will join SkyBridge as managing partner and chief investment officer, bringing a team of more than 20 professionals. Anthony Scaramucci, managing partner of SkyBridge Capital, said the integration of a fund of hedge funds business is a natural fit with the SkyBridge platform and that the deal reflects the firm's long-term strategy to acquire assets that maximise value for investors. He cited Citi's investment capabilities and fund of funds product suite, combined with SkyBridge's marketing, risk management and operational expertise, as creating an entity with significant growth potential. Nolte said the combined business would leverage established relationships with hedge fund allocators globally to deliver a highly diversified alternative product offering, and he will work alongside Scaramucci and co-managing partner Scott Prince.
Sandton Partners, a New York-based advisory firm, acted as exclusive financial adviser to SkyBridge on the acquisition.
The businesses are part of Citi Holdings, the segment that holds Citi's non-core assets. The sale is consistent with Citi's strategy to reduce non-core assets, manage risks tightly and optimise the value of assets in Citi Holdings, while generating long-term profitability and growth from Citicorp, which comprises its core businesses.
Raymond Nolte, who has led these businesses since 2005, will join SkyBridge as managing partner and chief investment officer, bringing a team of more than 20 professionals. Anthony Scaramucci, managing partner of SkyBridge Capital, said the integration of a fund of hedge funds business is a natural fit with the SkyBridge platform and that the deal reflects the firm's long-term strategy to acquire assets that maximise value for investors. He cited Citi's investment capabilities and fund of funds product suite, combined with SkyBridge's marketing, risk management and operational expertise, as creating an entity with significant growth potential. Nolte said the combined business would leverage established relationships with hedge fund allocators globally to deliver a highly diversified alternative product offering, and he will work alongside Scaramucci and co-managing partner Scott Prince.
Sandton Partners, a New York-based advisory firm, acted as exclusive financial adviser to SkyBridge on the acquisition.
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