Skybridge said the acquisition will make it “one of the leading global alternative asset managers.” When the deal is completed later this year, it will have $5.6 billion in assets under management. Skybridge, which was founded in 2005, plans to use the acquisition to expand from its traditional hedge-fund seeding business, which invests in emerging hedge fund managers, into funds-of-hedge funds, which invest in single hedge-fund managers.
Raymond Nolte, who ran the three businesses for Citi, will join SkyBridge as a managing director and chief investment officer when the deal is completed. He will bring with him a team of 20 people from Citi.
The businesses being acquired are units of Citi Holdings, which is made up of Citi's noncore assets and businesses that company is trying to divest. Citi had managed hedge funds since 1994.
"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," said Anthony Scaramucci, 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," Scaramucci added.
