Nov 6 (Reuters) – Citigroup Inc (C.N) is planning to relaunch Citi Alternative Investments (CAI), a unit that contains its hedge fund operations, the Financial Times reported on its website on Friday.
Citi wanted to change the name of the unit to Citi Capital Advisors, the paper said, citing people close to the situation.
The report said the move follows months of wrangling between CAI management and some top bank executives about what to do with the unit, which also includes its private equity operations and has $14 billion under management.
The unit, closely associated with Citigroup Chief Executive Vikram Pandit, is looking to raise around $2.5 billion in external capital next year, targeting sovereign wealth funds and other investors in emerging markets, the paper cited bankers as saying.
CAI has only raised a little more than $150 million so far, according to the paper.
Citigroup declined to comment to the newspaper on the name change but said the unit was “a highly valued part of Citi’s core franchise.”
A Citigroup spokesman in Hong Kong could not be immediately reached for comment by Reuters. (Reporting by Ajay Kamalakaran in Bangalore, Editing by Valerie Lee)