Citigroup announced Wednesday that its alternative asset management unit has made “significant progress” in separating from the bank.
Citigroup also said in the statement that the unit, Citi Capital Advisors, will be renamed Napier Park Global Capital. Once the separation is complete during the first quarter of this year, Napier Park will be majority owned by its employees.
eVestment previously reported that Citigroup was planning to transfer its 75% stake in Citi Capital Advisors to the unit’s managers under a plan arranged by former CEO Vikram Pandit. CCA co-heads Jonathan Dorfman and James O’Brien will own 25% of the firm, while CCA portfolio managers and employees will share the remaining 50% stake. Citigroup will keep the remaining 25% stake.
CCA manages approximately $18 billion in assets, however Napier Park is expected to have around $6.8 billion in AuM.