Citigroup Hedge Funds
Citigroup Raising $3.5 Bil for Hedge Funds, Private Equitysee this article for more information. While that possibility looms over the banks, Citigroup is rumored to be raising $3.5 billion for its hedge funds and private equity over the next two years.
Citi Capital Advisors, Citigroup's alternative asset management platform, will try to raise around $1.5 billion for private equity and around $1.75 billion for hedge funds, the person said, without elaborating on the time frame or how much Citigroup will invest in the funds.
The planned fund raising comes during consideration of a legislative proposal on Capitol Hill that would bar big commercial banks from making speculative proprietary derivatives and stock investments for their own accounts.
The so-called "Volcker rule" proposal--named after ex-Federal Reserve chief Paul Volcker, who chairs U.S. President Barack Obama's economic-advisory panel--would also cap the size of big banks and force financial institutions to divest hedge funds and private-equity units.
The amount Citigroup is looking to raise is a huge sum under the current environment when investors are still cautious about whom to entrust their money with, and funds generally would refrain from having a specific fundraising target, for fear that they won't be able to meet it. Source