Key Takeaways
- • Citi Capital Advisors (CCA), Citigroup's alternative asset management platform, will separate from Citigroup as an independent firm named Napier Park Global Capital.
- • Napier Park expects to start with approximately USD6.8bn in assets under management, with majority ownership held by its employees.
- • Material regulatory approvals have been obtained, and the investor and counterparty consent process is nearly complete, with separation scheduled for the first quarter of 2013.
- • Napier Park has been appointed portfolio manager of a USD415m CLO fund scheduled to close in the current quarter, and its CLO platform currently manages USD2.4bn.
Summary
Citi Capital Advisors (CCA), a global alternative asset management platform, has made significant progress toward separating certain of its businesses from Citigroup. The new independent asset management firm will be called Napier Park Global Capital. According to the original report, material regulatory approvals have already been obtained and the investor and counterparty consent process is nearly complete.
Once the separation is completed in the first quarter of 2013, Napier Park Global Capital will be majority owned by its employees. The firm will offer a diversified product mix spanning hedge funds, bespoke client solutions, collateralised loan obligations (CLOs) and private investing. It is expected to have approximately USD6.8bn in assets under management at inception.
The name was inspired by John Napier, the 16th century Scottish mathematician and physicist best known for originating the concept of logarithms as a means of simplifying large, complex calculations.
CCA co-chief executive Jim O'Brien said the firm was pleased with its progress toward launching Napier Park as an independent asset manager in the coming months, and that investor support had been overwhelmingly positive. Separately, the firm was appointed portfolio manager of a USD415m CLO fund scheduled to close that quarter. The CLO platform, which currently has USD2.4bn in AUM, and its credit and loan strategies are expected to remain a key investment centre for Napier Park after the separation.
Once the separation is completed in the first quarter of 2013, Napier Park Global Capital will be majority owned by its employees. The firm will offer a diversified product mix spanning hedge funds, bespoke client solutions, collateralised loan obligations (CLOs) and private investing. It is expected to have approximately USD6.8bn in assets under management at inception.
The name was inspired by John Napier, the 16th century Scottish mathematician and physicist best known for originating the concept of logarithms as a means of simplifying large, complex calculations.
CCA co-chief executive Jim O'Brien said the firm was pleased with its progress toward launching Napier Park as an independent asset manager in the coming months, and that investor support had been overwhelmingly positive. Separately, the firm was appointed portfolio manager of a USD415m CLO fund scheduled to close that quarter. The CLO platform, which currently has USD2.4bn in AUM, and its credit and loan strategies are expected to remain a key investment centre for Napier Park after the separation.
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