GLOBAL - A group of former Citi employees has launched a firm to help pension funds access alpha-generating investments.
The company - Ivaldi Capital - is targeting institutional investors wanting to access active alpha or absolute return strategies via external managers but lacking the infrastructure to support them.
Citi said the firm's platform is designed on the back of the increasing demand for alpha-generating investments by institutional investors, including pension funds, endowments and sovereign wealth funds.
The platform provides risk management, portfolio construction and manager selection assistance, as well as a suite of middle-office services, administration and custody solutions.
According to a Citi spokesman, one large European fund is currently using the platform.
Citi head of securities and fund services in EMEA Andrew Gelb said the platform will guide value across the investment lifecycle "as asset managers strive to meet the needs of investors amid a changing regulatory landscape".
Ivaldi was set up by former Citi employees with €400m ($508m) of assets and is expecting to reach €2bn from its seed investors.
Citi is acting as a prime broker, administrator and custodian to the platform. Citi owns a minority stake in Ivaldi, but is not providing any investment capital.
Ivaldi grew out of an investment vehicle Citi originally created in 2008 for the Danish state pension fund ATP, called AlphaOne. It is based in London, but intends to establish presences in Asia and the US.
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