$42.8 billion alternative investments group named Raymond Nolte CEO of its $3.5 billion hedge fund business. He will oversee the fund-of-funds business as well as the Hedge Forum group of single-manager funds.
Nolte comes from
, where he held a similar role as vice chairman of Deutsche Bank Absolute Return Strategies, the fund-of-funds division, and the group's single-manager hedge fund business. Funds of funds invest in hedge fund managers while single hedge funds directly invest clients' money in any type of strategy.
Citigroup has had recent success snatching key fund executives from Deutsche Bank. In the hot area of prime brokerage crucial for the launching, seeding and financing of hedge fund managers, Citigroup recently hired Nick Roe as European head of its prime brokerage business and equity finance.
An industry official who recently left Deutsche Bank says the departures reflect a reshuffling that took place between the fixed-income and the equity side of Deutsche during the first quarter. A spokesman at Deutsche Bank did not immediately return a call.
Nolte, who starts Sept. 1, was on vacation and unavailable for comment. He will report to David J. Vogel, CEO of Citigroup global funds-of-funds group. Vogel's group includes non-U.S products, while Nolte's focus is more on U.S.-based investments, although geographic lines between hedge funds are often blurred.
Nolte is a veteran hedge fund executive, having spent more than 20 years in the business. He established a fund-of-funds business at
with the launch of the Topiary Fund in 1997, prior to Deutsche Bank's acquisition of the company.
Citigroup Alternative Investments has 12 different types of investments. Nolte will oversee hedge funds; other investments include real estate, bank loans, private equity and managed futures.