SkyBridge Capital has entered into a definitive agreement with Citi Alternative Investments (CAI), part of the bank's Citi Holdings division, to its fund of hedge funds, hedge fund seeding and hedge fund advisory businesses.
CAI has total investments under management and advisory of $4.2bn. Upon completion of the deal, SkyBridge is likely to increase its assets under management and advisory to $5.6bn. Moreover, the acquisition will enable the SkyBridge to expand its asset management and hedge fund operations.
The sale of the CIA is part of the Citigroup’s strategy to reduce the noncore assets, tightly manage risks and optimize the value of assets in Citi Holdings.
Raymond Nolte, who led the businesses at CAI since 2005, will become chief investment officer and a managing partner at SkyBridge. He brings a team of 20 with him to SkyBridge. Prior to CAI, he was associated with Bankers Trust and its successor Deutsche Bank, for more than twenty years serving in various positions.
Anthony Scaramucci, managing partner of SkyBridge Capital, said: “It has been our belief for several years that 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 maximize value for investors.”
Mr Nolte said: “I am excited to be teaming up with Mr Scaramucci and his co-managing partner Scott Prince. With the combined business, we can leverage the firm’s established relationships with hedge fund allocators globally to deliver a highly-diversified alternative product offering.”