Citigroup has hired a veteran UBS rates salesman to join its hedge fund coverage team in London, according to a person familiar with the matter. The move is part of the bank's broader push to expand its prime brokerage and hedge fund services.
New hire brings decades of experience
The new hire, whose name has not been disclosed, spent more than 20 years at UBS, most recently as a managing director in the rates sales division. He will report to Citigroup's head of hedge fund coverage in Europe, the Middle East and Africa.
Citigroup has been actively recruiting in its prime brokerage unit, which provides financing, execution and custody services to hedge funds. The bank aims to capture a larger share of the growing hedge fund market, particularly in Europe.
Strategic expansion in prime brokerage
The hiring comes amid increased competition among global banks for hedge fund clients. Citigroup has been investing in technology and talent to improve its prime brokerage offerings. The bank reported a 12% increase in prime brokerage revenue in the first quarter of 2023 compared to the same period last year, according to its earnings release.
"Citigroup is making a concerted effort to win more hedge fund business," said a source close to the bank. "The addition of a seasoned professional like this demonstrates their commitment to the sector."
Impact on the market
The move is expected to strengthen Citigroup's relationships with hedge funds in Europe, particularly those focused on rates trading. The bank's prime brokerage unit has been expanding its team in London, New York and Hong Kong.
Hedge funds have been increasingly active in rates markets due to volatility driven by central bank policy changes. Citigroup's enhanced team is well-positioned to capitalize on this trend, according to industry analysts.
