Citigroup said it is acquiring Old Lane Partners, an alternative
asset manager co-founded by former Morgan Stanley executive Vikram Pandit.
Pandit will become chief executive of Citi Alternative Investments, a spot left open after Michael Carpenter left in March 2006.
Citi is only the latest Wall Street bank to buy an alternative asset manager, but several industry watchers said earlier this week the deal may also be motivated by the bank's
desire to recruit management talent.
Pandit is seen as being on a short list to possibly run Citigroup in the future.
Old Lane has about $4.5 billion of assets under management and private equity commitments.
Terms of the deal were not disclosed. Initial estimates made before the buyout was confirmed put a $600 million price tag on Old Lane.