Bloomberg – Citigroup Inc. (C) is seeking to raise money for a new hedge fund without putting its own cash into the venture, in a test of investors’ willingness to buy in when the bank isn’t sharing risk, said two people briefed on the plan.
The lender, which is preparing for U.S. curbs on lenders investing their own capital, seeks to raise $50 million to $75 million from outside investors for the fund, said one of the people, who asked not to be identified because Citigroup hasn’t disclosed the information publicly. The pool will trade in so- called collateralized loan obligations, or CLOs, according to marketing materials obtained by Bloomberg News.
