Alt Investments
Citigroup Wealth Management Enters “First of its Kind” Alternative Joint Venture
Citigroup Global Wealth Management has set up a new joint venture with Pacific Alternative Asset Management, a hedge fund firm, to provide b...
Citigroup Global Wealth Management has set up a new joint venture with Pacific Alternative Asset Management, a hedge fund firm, to provide bespoke hedge fund portfolio management services to ultra-high net worth investors.
The new joint venture, Global Hedge Strategies, is designed to serve, what Citigroup sees, as the growing demand for alternative investment among affluent investors.
“The move is also designed to formalize a five-year long relationship with Pacific and Citigroup,” Jose Dios, the head of the new joint venture, told Wealth Briefing. “We’ve been living together for sometime without being married.”
Mr Dios said the joint venture is the first of its kind and aims to bring institutional quality investment expertise and credibility in the area of alternative investments to the ultra-high net worth market. He said the venture is looking to attract investors with at least $100 million-$150 million in liquid assets.
“The joint venture will enable us to create tailor-made investment portfolios with individual hedge fund strategies and moves away from basic fund of hedge funds strategies. And these tailor-made strategies will enable much more transparency and ensuring credibility for the investor,” said Mr Dios.
Mr Dios added that the joint venture had already attracted a considerable amount of assets, although he was unwilling to disclose any assets under management figure.
Pacific Alternative Asset Management manages more than $7 billion and has a client mix of large public and private pension plans, foundations, endowments, and financial institutions.
Pacific originally had a relationship with Winter Capital, which was set up by Clark Winter, before being acquired by Citigroup in 2000. Mr Winter is now chief global investment strategist at Citigroup Private Bank.
Citigroup Global Wealth Management was set up late last year as an umbrella grouping of the firm’s two major private client groups, Smith Barney Private Clients and Citigroup Private Bank.
