Citigroup to acquire hedge fund Old Lane

Apr 16, 2007 @ 8:09 am

Citigroup Inc. on Friday agreed to buy Old Lane LP, a

13-month-old hedge fund run by Vikram Pandit and a group of his former colleagues from Morgan Stanley in New York.

As part of the deal, Mr. Pandit, who co-founded New York-based Old Lane, will become chief executive of Citigroup Alternative Investments, which runs $59 billion in assets for the New York financial giant. Although the terms of the transaction were not disclosed, Citigroup agreed to pay $800 million for Old Lane, according to a report published Friday in The Wall Street Journal.

Mass. says hedge fund defrauded investors

Massachusetts regulators Friday charged Boston hedge fund manager Lydia Capital LLC and two principals, Evan Anderson and Glenn Manterfield, with defrauding investors through a misleading private-placement memorandum on an investment involving the resale of life insurance policies.

The complaint alleges that Lydia Capital raised about $33 million from about 57 investors in Taiwan. The Lydia Fund allegedly bought life insurance policies on individuals 65 or older. About half of those policyholders falsified their insurance applications by stating on the form that they had no intention of selling their policies, according to the complaint.

Piper Jaffray to buy FAMCO

Piper Jaffray Cos. on Friday agreed to acquire Fiduciary Asset Management LLC, a St. Louis-based investment manager, for $66 million in cash, as well as future cash consideration based on financial performance.

Charles Walbrandt, Famco’s chief executive, will continue to lead the management team and will report to Andrew Duff, Piper Jaffray’s chairman and chief

executive.

The deal will allow Piper Jaffray, a Minneapolis-based investment bank, to enter the asset management business.

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