Citigroup loses UK transition management team - UPDATED

The changes at Citi's come hot on the heals of December's announcement that UBS is to shut its European TM business. Lehman Brothers transition business shut when the bank filed for bankruptcy in September.

Mercer Sentinel Group European director Ben Gunnee predicted there could be more closures of investment bank transition teams as banks looked for ways to cut headcounts.

He said: "Many clients are moving towards the asset management model for transition management because they don't want their manager disappearing mid transition."

Professional Pensions understands the Citi TM business was comfortably profitable and that the decision to close the business followed discussions on a proposed restructuring which would have seen the unit relocated to either the custody business or the trading floor. It is understood the TM team was unhappy with both options and decided to leave.

Gunnee commented: "The Citi team were an experienced outfit and it's a shame that pension funds will now have less choice when looking for a transition manger."

Inalytics chief executive and T-Charter chairman Rick Di Mascio said: "The loss of Citi from the sector means there are even fewer credible providers of transition management out there."

Tim Wilkinson, former global head of TM at Citi was unavailable for comment.

A Citi spokesman said, while there was no current origination capability in the UK, Citi could still execute global transitions as the program desks remained in tact.

He said:" Citi remains committed to the transition management business. We believe we have unparalleled global execution capabilities and a depth of advisory experience in the Americas, Asia and Australia."