Ali Hackett To Head Prime Brokerage Unit At Citigroup

Citigroup has appointed a new head of its prime brokerage unit as part of a broader campaign to compete in the lucrative business of servicing hedge funds, according to an internal memo. Ali Hackett, formerly Citigroup's head of global futures,

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Citigroup has appointed a new head of its prime brokerage unit as part of a broader campaign to compete in the lucrative business of servicing hedge funds, according to an internal memo.

Ali Hackett, formerly Citigroup’s head of global futures, was named head of prime brokerage and global finance sales, according to a memo sent by Bill Heinzerling, the head of global finance, which was obtained by Reuters on Tuesday.

Brokerage services for hedge funds — which range from trade execution to loans of money and stock to providing office space — has been one of Wall Street’s most profitable and fastest growing businesses.

Citigroup, despite being the largest financial services group in the world, lags well behind Morgan Stanley, Goldman Sachs Group, Bear Stearns and others prime brokerage.

Morgan Stanley, Goldman and Bear Stearns together control about two-thirds of the prime brokerage market, which will generate revenue of about $7.5 billion this year, according to a recent report by Deutsche Bank Securities.

Smaller players like Citigroup, Barclays Capital, Deutsche Bank, Lehman Brothers, Merrill Lynch, UBS and CSFB are all making efforts to take a larger slice of a business which accounts for much of the financing and commission income generated by modern financial markets.

Citigroup Chief Executive Charles Prince has said that prime brokerage is one of the businesses that it seeing to expand.

Hackett’s new position was created to co-ordinate Citigroup’s prime brokerage efforts. Heinzerling, who is also responsible for short-term debt products and retail trading, had previously overseen those divisions as part of broader responsibilities.

Najib Lamhaouar, the former global sales head for futures, will replace Hackett as head of global futures.

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