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CNBC's Gasparino: Citigroup to Buy Hedge Fund for $600 Million

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.

Old Lane is run by former Morgan Stanley executives Vikram Pandit and John Havens, and if the deal is completed as expected, they will also join Citigroup's management ranks.

Analysts and investors have often criticized Citigroup and it CEO Chuck Prince for having one of the weakest management teams on Wall Street, Gasparino said.

Through its purchase of Old Lane, Citigroup would be importing top notch management talent, he added. Pandit was considered a possible successor to former Morgan Stanley CEO Phil Purcell and the other Old Lane executives ran major businesses at Morgan Stanley.