Ex-Citi executive takes top fund role

Bank veterans re-emerge in industry positions

Napier Park, the $6bn hedge fund business that Citigroup spun off last year, has appointed John Havens, the former president and chief operating officer of Citi, as its new non-executive chairman and partner, the fund said on Tuesday.

The spin-off of Citi Capital Advisors’ hedge fund into Napier Park in March last year allowed former Citi employees to benefit from the business that had to be separated under the Volcker rule. The fund is run by ex-Citi bankers Jonathan Dorfman and Jim O’Brien.

Mr Havens is the latest former Citigroup executive to make a comeback in financial services, alongside Sanford “Sandy” Weill and Vikram Pandit, in the past eight months.

Mr Havens resigned alongside Mr Pandit, the former chief executive of the US bank and a close ally, who was ousted unceremoniously in October 2012. None of the ex-Citi bankers has returned to conventional commercial banking in the US, opting instead for the shadow banking industry.

The return of Mr Havens comes after Mr Weill, the 80-year-old former chairman and chief executive of Citi, resurfaced as chairman of the board at Hamilton Insurance Group, the holding company for a Bermuda-based reinsurer sold by SAC Capital Advisors.

Mr Pandit was appointed non-executive chairman at a new Indian financial services company that he invested in through warrants in the holding company. His partners in the non-bank financial company are Nimest Kampani of JM Financial and Hari Aiyar, a former Morgan Stanley colleague of Mr Pandit.

Citigroup still holds a 24.1 per cent investment management stake in the business but has committed to drawing down capital over time.

“Citi’s overall objective in separating Citi Capital Advisors was to enable full compliance with the Volcker rule’s limits on proprietary capital and was also part of a strategic decision to no longer participate in alternative asset management,” Citigroup said in a statement.

While many banks have already sought ways to divest from their proprietary trading business as a result of the Volcker rule, others are still considering how to spin off their businesses without feeling too much pain.

The bank is also exiting its private equity businesses, including most recently the spin-off of Metalmark Capital.

Copyright The Financial Times Limited 2016. All rights reserved. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

More on this topic

Suggestions below based on Citigroup

Citi warns on Brexit in memo to staff

With just 15 days till British voters head to the polls to decide whether to stay in the European Union, Citi, a contributor to the Remain camp, has warned employees that if the country leaves, local staff may be “rebalanced.” Sounds sinister.