Citigroup has floated a new group as part of its investment bank to cater to varied requirements of richest investors across the world. The new global asset management group within the investment banking business will combine corporate, investment banking, private equity and sovereign wealth spaces to focus more on wealthy investors.
The new asset management group under Citigroup's investment banking will be led by Zubaid Ahmad and Brad Coleman. Raymond J. McGuire, global head for corporate and investment banking, said Citigroup has established a new asset management group for wealthy people in the world.
Business Insider reports that several portfolios will be integrated under the new asset management group. Corporate and investment banking coverage of private-equity, sovereign-wealth, pension hedge funds and certain family offices will be combined under one umbrella of the new asset management group.
A memo from Citigroup stated that "Asset Managers have grown into a sizeable client base comprising Alternative Asset Managers, Private Equity Funds, Hedge Funds, Sovereign Wealth Funds, Pension Funds and traditional Asset Managers, with an aggregate of over $70 trillion of assets under management and rising."
Yahoo Finance further adds that these institutions are expected to widen the scope for investment opportunities including asset classes and geographies. The investment banking is also evolving from just mere transaction mode to strategic level. This is where the requirements of wealthy investors are addressed in a customized manner.
Citigroup is also focusing on global consumer banking services. Citigroup is serving its huge clientele base across North America, Europe, Middle East and Africa (EMEA), and Asia. Citigroup is in the process of evolving innovative products and investment solutions to emerging markets with highest growth potential.
Senior investment bankers Zubaid Ahmad and Brad Coleman will oversee the new group's activities catering to the increasing needs of high net worth clients. The new asset management group is expected to further widen the scope of functions and responsibilities in rendering investment banking services to the richest people across the world.
Ahmad is Vice-Chairman of Citigroup's institutional clients group while Coleman is global head of Citigroup's alternative assets group.Coleman will co head the new asset management group, while continuing his previous responsibilities, as reported by Reuters.
The global consumer banking volume was $10 billion and $331 billion deposits in 2014. Citigroup managed $173 billion assets during the year. It's planning to increase product offering to high net worth clients through 3,280 branches in 700 cities, according to Citigroup.
Ahmad and Coleman will review client prioritization along with Citigroup's markets and securities services business. They will work closely with wealthy investors to strengthen coverage teams with an objective of enhancing more capital commitments to clients.
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