Citi Forms Alternative-Asset Group

Citigroup is forming an alternative-asset group by combining its private-equity and infrastructure advisory groups into a single unit within its investment bank. According to an internal memo published by the New York Times, the group will be headed by Chad Leat as chairman and Brad Coleman as global head.

"For Citi to capture the business opportunities that present themselves now and especially in the future, we need a more coordinated and holistic approach to these businesses," reads the memo from Jamie Forese, Ray McGuire and Alberto Verme. "The Alternative Asset Group will be charged, not only with maintaining and growing our existing businesses, but also with developing and implementing a new strategy for similar asset classes including hedge funds as well as the more traditional players."

Forese heads sales and trading and capital markets, whil McGuire and Verme are co-heads of the investment bank.

According to Bloomberg Kamal Tabet, who oversaw private equity advisory, is taking a sabbatical for the rest of 2008. John Burnham, who was in charge of the infrastructure team, will retire.