Citigroup’s (NYSE: C) global prime finance head, Nick Roe told Bloomberg News that Citigroup intends to double the size of its team that manages government-backed funds and direct hedge fund investments. Roe commented that the growth of the consulting team could come together within the next 18 to 24 months.
Sovereign wealth funds, pension funds and foundation are increasingly becoming some of the largest investors in the hedge fund industry as the global hedge fund industry begins a recovery.
Investors are increasingly seeking to make direct hedge fund investments rather than investing in funds-of-funds, noted Bloomberg. The trend of choosing more individual funds has created more demand for service to help manage their holdings.
“We see it as one of the major growth areas for us,” Mr. Roe told Bloomberg. “The pension funds, the institutional asset market are going directly to hedge funds. It was the reverse of what the investor profile was two years ago.”
