Citigroup is reorganising its hedge fund services by offering equity, fixed income, currency trading and other services through one prime brokerage business unit, according to a March 15 internal memo obtained by Reuters.
The new Hedge Fund Services unit will be headed by Steve Bowman, most recently head of fixed income sales, the memo stated. Bowman will report to Jamie Forese, head of equities, and Neeraj Sahai, head of securities and fund service.
"Serving hedge funds is a key strategic opportunity for Citi," the memo said. It said the new unit aims to unify "multi-broker, multi-strategy capabilities under one business to anticipate and address the increasing complex needs of hedge fund clients anywhere in the world."
A spokesman for Citigroup, now branded as Citi, declined to comment other than to confirm the contents of the memo.
Citigroup, like other major financial institutions, is pushing hard into the lucrative area of serving a growing hedge fund industry. Prime brokerage, which provides trade execution, lending, capital raising and other services to hedge funds, is currently dominated by Morgan Stanley, Goldman Sachs and Bear Stearns Cos.
Prime brokers vying for an increased share of a $1.4 trillion hedge fund market now must offer an increasing array of services to an industry that trades a increasingly diverse array of strategies. Citigroup already offers multiple hedge fund services, but is consolidating them with the new unit, the memo stated.
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