Citigroup (C.N) has announced a significant restructuring within its investment banking division, forming a new Financial and Strategic Investors (FSI) arm. This new group will replace the existing Global Asset Managers (GAM) group, according to an internal memo seen by Reuters on Friday. The banking behemoth has tapped investment banking veteran Klaus Hessberger to co-lead the FSI arm. Hessberger, previously the global co-head of Lazard’s (LAZ.N) Financial Sponsors Group, will operate out of London alongside current North America GAM leaders Michael Marcus and Michael Quadrino.
The newly established FSI arm is set to concentrate on serving financial sponsors, sovereign wealth funds, and family offices, as outlined in the memo from Citi’s Head of Banking and Executive Vice Chair, Vis Raghavan. Citigroup is a major global financial services company, providing a broad range of banking, lending, and investment services to consumers, corporations, and governments worldwide. Hessberger brings over three decades of industry experience, including a distinguished 25-year tenure at JP Morgan (JPM.N) where he held various senior leadership roles.
In a related move, current GAM leader Ashu Khullar will step down from his role and is expected to explore other senior opportunities within Citigroup. Furthermore, the internal communication revealed that Citi will establish Global Infrastructure Coverage as an independent vertical. This initiative will be spearheaded by long-standing insider Todd Guenther. The formation of this dedicated infrastructure unit comes amidst exceptional levels of activity within the global infrastructure investment sector, reflecting Citi’s strategic focus on evolving market dynamics.
