SkyBridge Capital has entered into a definitive agreement to acquire the fund of hedge funds, hedge fund seeding and hedge fund advisory businesses from Citi Alternative Investments, with total investments under management and advisory of USD4.2bn.
SkyBridge says the transaction will position it as one of the leading global alternative asset managers with a total of USD5.6bn in assets under management and advisory.
Terms of the transaction were not disclosed.
The businesses are part of Citi Holdings, the segment which contains Citi’s non-core assets and businesses.
The sale is consistent with Citi’s strategy to reduce non-core assets, tightly manage risks and optimise the value of assets in Citi Holdings, while working to generate long-term profitability and growth from Citicorp, which comprises the company’s core businesses.
Raymond Nolte, who has led these businesses since 2005, will join SkyBridge as a managing partner and chief investment officer. He brings a team of more than 20 professionals.
"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 maximise value for investors," says Anthony Scaramucci (pictured), managing partner of SkyBridge Capital. "Citi’s proven investment capabilities and comprehensive suite of fund of funds products combined with our entrepreneurial culture, marketing, risk management and operational expertise creates an entity with significant growth potential."
"I am excited to be teaming up with Anthony and his co-managing partner Scott Prince," adds Nolte. "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."
Sandton Partners, a New York-based advisory firm, acted as the exclusive financial adviser to SkyBridge on the acquisition.
