Citigroup is reorganizing part of its investment banking capability by creating a Financial and Strategic Investors group, according to an internal memo from the bank's head of banking, Vis Raghavan. The new division is intended to strengthen the bank's engagement with financial sponsors and related institutional private capital clients.
The group will replace the former Global Asset Management business and is structured to cover three distinct client segments: financial sponsors, sovereign wealth funds and family offices. Management of the unit will be shared by three executives: Michael Marcus and Michael Quadrino, who will be based in New York, and Klaus Hessberger, who will lead the effort in London.
Marcus and Quadrino are already responsible for sponsor relationships in New York, while Hessberger is joining Citigroup from Lazard. At Lazard, Hessberger served as Global Co-Head of Financial Sponsors. The memo notes that before his time at Lazard he spent 25 years at JPMorgan Chase & Co.
The change signals a repositioning of Citigroup's coverage model within investment banking, concentrating several types of large private capital clients under a single leadership team. The bank's stated goal for the new group is to increase transaction activity with financial sponsors.
Operational details beyond the naming and leadership appointments were not provided in the memo excerpt. The announcement centers on the organizational replacement of Global Asset Management and the assignment of three executives to lead coverage across the designated client segments in New York and London.
Summary of the move
- Citigroup will form a Financial and Strategic Investors group inside investment banking.
- The unit replaces Global Asset Management and will focus on financial sponsors, sovereign wealth funds and family offices.
- Leadership will include Michael Marcus and Michael Quadrino in New York, and Klaus Hessberger in London, with Hessberger arriving from Lazard.