The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. Picture taken October 19, 2017. REUTERS/Chris Helgren
(Reuters) -Wall Street heavyweight Citigroup has agreed to sell its wealth alternatives unit to fintech firm iCapital, the companies announced on Tuesday, as the bank pursues simplifying its business.
The unit, Citi Global Alternatives, represents more than 180 funds distributed by the bank across asset classes including private equity, infrastructure, hedge funds, and private credit.
New York-based iCapital will manage and operate the platform, while Citi will remain the distributor for the funds and offer guidance to clients on the role of alternative investments.
"We are excited to partner with Citi Wealth to drive growth for their alternatives business globally. iCapital's technology platform will streamline the operations and management of their current and future alternative investment funds platform," iCapital CEO Lawrence Calcano said.
The firm will also assist Citi Wealth's global sales capabilities with a dedicated team to support the growth of the bank's alternatives platform.
The terms of the transaction were not disclosed.
Citi recently revamped its wealth management arm - a key step in CEO Jane Fraser's growth strategy - as part of its broader overhaul to simplify the bank's sprawling structure.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)
