Citi seals deal to buy Old Lane
According to reports, Citigroup could pay more than $800m for the deal
By Agencies |
NEW YORK: Citigroup has sealed a deal to buy Old Lane, a hedge fund co-founded by former Morgan Stanley executive Vikram Pandit, the Wall Street Journal reported on its website on Thursday.
By joining Citigroup, Pandit could join a short list of potential successors to chief executive Charles Prince, the Journal said.
Citigroup could pay more than $800 million, the paper reported, citing unnamed sources. But the announced price could be lower, with the total raised by future payments based on the fund’s performance, it added.
The deal is likely to be announced ahead of Citigroup’s annual meeting on Tuesday, the paper said. Old Lane and Citigroup could not immediately be reached for comment.
Old Lane is thought to have more than $4 billion of assets under management, the newspaper said. Pandit is a former head of Morgan Stanley’s institutional securities division.
Once considered a potential successor to former Morgan Stanley chief executive Philip Purcell, Pandit left the investment bank in March 2005 as part of an exodus of senior bankers and traders.
He later founded Old Lane with John Havens, a former global head of equities at Morgan Stanley. The alternative investments unit is by far the smallest of Citigroup’s four main businesses. Last year, profit at the unit fell 11% to $1.28 billion, and revenue dropped 15% to $2.9 billion.
The unit at year end oversaw $49.2 billion of assets, including $10.7 billion of Citigroup’s own money.
By joining Citigroup, Pandit could join a short list of potential successors to chief executive Charles Prince, the Journal said.
Citigroup could pay more than $800 million, the paper reported, citing unnamed sources. But the announced price could be lower, with the total raised by future payments based on the fund’s performance, it added.
The deal is likely to be announced ahead of Citigroup’s annual meeting on Tuesday, the paper said. Old Lane and Citigroup could not immediately be reached for comment.
Old Lane is thought to have more than $4 billion of assets under management, the newspaper said. Pandit is a former head of Morgan Stanley’s institutional securities division.
Once considered a potential successor to former Morgan Stanley chief executive Philip Purcell, Pandit left the investment bank in March 2005 as part of an exodus of senior bankers and traders.
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He later founded Old Lane with John Havens, a former global head of equities at Morgan Stanley. The alternative investments unit is by far the smallest of Citigroup’s four main businesses. Last year, profit at the unit fell 11% to $1.28 billion, and revenue dropped 15% to $2.9 billion.
The unit at year end oversaw $49.2 billion of assets, including $10.7 billion of Citigroup’s own money.
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