Skybridge to acquire Citi Alternative Investments

SkyBridge Capital enters agreement with Citi’s hedge fund businesses.

Citi Alternative Investments (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 and expand its own asset management and hedge fund operations.

"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, said Anthony Scaramucci, managing partner of SkyBridge Capital.

The sale 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. "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," said Mr Nolte.