Citigroup sheds more assets as it plans to sell hedge fund unit to SkyBridge

CITIGROUP plans to sell a hedge fund business with $4.2bn (£2.7bn) worth of assets to US investment firm SkyBridge Capital.

The deal marks another step in Citi’s plan to shed assets. The unit had been languishing in Citi Holdings, the bank’s repository for businesses that it is trying to sell or wind down.

The unit includes Citi’s hedge fund business, hedge funds that it manages, and stakes in small hedge funds. Terms of the deal were not disclosed.

The deal was first reported in February, when SkyBridge, a New York firm that invests in start-up fund managers, had emerged from preliminary discussions as the final, exclusive bidder for the unit.

Citigroup sold the businesses from its Citi Alternative Investments unit, which has been managing funds-of-hedge-funds since 1994.

Raymond Nolte, who oversaw the businesses at Citi, will join SkyBridge as part of the deal. Nolte, who will become a managing partner and chief investment officer, will also bring a team of more than 20 people from Citi to SkyBridge.