Citigroup (NYSE:C) has reportedly sold their hedge fund business – which had operated as Citi Alternative Investments – to Skybrdige Capital, the investment company launched by Anthony Scaramucci.
As a result, an additional $4.2 billion in assets will be added to Skybridge, bringing the total in assets under management by the company to $5.6 billion.
What Citi Alternative does is invest in a variety of hedge funds through buying minority stakes in them for clients.
Terms of the deal weren’t revealed, but head of Citi Alternative, Raymond Nolte, along with over 20 workers from the unit will be included in the deal, and will transfer to SkyBridge, along with the hedge fund business.
SkyBridge has a similar business model as Citi Alternative, which also buy stakes in hedge funds, as well as other assets under management, so this won’t be too much of a stretch to quickly get everyone on board and merge the unit into the company.
Other investments made by Citi Alternative have been real estate and private equity, although it wasn’t clear if those, as well as the advisory service of the division will continue to be part of operations after the deal is closed.
