Citigroup is putting the finishing touches on the purchase of hedge fund Old Lane Capital for about $600 million, CNBC's Charlie Gasparino has learned.

Baring some last minute glitch, the deal should be done in a matter of says, people with knowledge of the matter told Gasparino.

Old Lane has only been in existence for around a year, The reason Citigroup is willing to pay such a hefty price for a hedge fund without a proven track record is because Citigroup will be getting more than assets under management, Gasparino said.