Citigroup offers Alternative Investment Hedge Fund arm in Asia

Citigroup offers Alternative Investment Hedge Fund arm in Asia
Citigroup has launched an administration business hedge fund in Asia Pacific. The service will benefit hedge fund mangers by easing their administration burden. In effect clients will be outsourcing their administration requirements to Citigroup.

In a statement, Matthew Brown, Asia Pacific head of fund services said, “Hedge fund managers increasingly want an integrated service provider. The combination of prime brokerage and alternative investment administration services means Citigroup is able to offer clients the complete transaction banking service. From fund administration, to global custody and cash management to prime brokerage, Citigroup can now offer the full service to clients in Asia Pacific,”

Asia Pacific is one of the fastest growing regions in terms of funds under management. According to Eurekahedege, the number of new fund launches is forecast to hit 216 in 2006, up from 95 in 2003 and assets under management have doubled since 2003, according to data from Eurekahedge.

The business will compete with firms including HSBC Holdings Plc, and Fortis to provide accounting, valuation, record keeping, reporting and other services for Asian hedge funds.

The Citigroup division, which has about 150 employees globally, already administers about $45 billion in hedge fund assets. The hedge fund administration in Asia is under the local command of managing director Matt Brown.

The firm already offers these services elsewhere in the world, as the world’s largest bank, Citibank said it had launched its hedge fund administration business into Asia, hoping to win a slice of the fast growing market. It established its hedge-fund administration services originally in the United States in December 2004, and now has $45 billion in assets under administration and employs a roster of 150 staff.

Citigroup is a leading provider of alternative investment around the world and the launch of this servicing capability in Asia Pacific will complement the growth of the emerging markets.