It's Back: Citi To Relaunch Disastrous Alternative Investments Unit

Citigroup is planning to recapitalize and relaunch its trouble Citi Alternative Investments unit after two years of downright awful performance. A name change could even be in the works for the unit:

FT: People close to the situation said that the company wanted to change the name of the unit – which has $14bn under management and also includes private equity operations – from Citi Alternative Investments (CAI) to Citi Capital Advisors.

The fate of CAI is particularly sensitive because the unit is closely associated with Citi’s chief executive, Vikram Pandit. The former Morgan Stanley executive joined Citi as head of CAI in 2007 when the bank paid about $800m for Old Lane, a hedge fund that has since folded. John Havens, another veteran of Morgan Stanley and Old Lane, now heads Citi’s securities business and oversees CAI.

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