Citigroup’s head of global prime finance told Bloomberg News last week that the bank plans on doubling the size of its team which helps government-backed and pension funds manage their direct hedge fund investments.
The executive, Nick Roe, told Bloomberg that the growth of the consulting team could come together within the next two years.
Sovereign wealth funds, pension funds and foundations are quickly becoming the largest set of hedge fund investors in the world as the global hedge fund industry nears a recovery.
Bloomberg noted that these investors are investing more directly in hedge funds rather than going through the standard route of investing in fund-of-funds. The trend has placed an increased demand on firms that offer consulting services on Hedge Funds such as Citigroup.
“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.”
-etf-logo-1200x675.png){kind=logo}