Citigroup Inc. said Wednesday that it would restructure its alternative investments strategy as a result of this year's purchase of Old Lane Partners LP.
John Havens, the president of Citi Alternative Investments, wrote in an internal memo that his unit would shutter its Tribeca Global Investments platform, which has $2.4 billion of assets under administration, and use Old Lane as its sole investment platform.
"We believe we can best serve our clients by offering a single, multistrategy hedge fund platform and that Old Lane, with nearly $4.25 billion of assets under management, will be our flagship product," he wrote.
Citi bought Old Lane, which was run by a team of former Morgan Stanley fund managers, for $800 million. Before the deal closed in April, Old Lane had $4.5 billion of assets.
In an e-mail to American Banker, Citi said that there was "significant overlap in the multistrategy area" between Old Lane and Tribeca, and that the restructuring "has nothing to do with market conditions."
Mr. Havens wrote in the memo that his unit will unveil new products "shortly."
