Citigroup launches infrastructure investment fund

Citi Infrastructure Investors will be backed with an initial investment of $500 million from Citigroup Alternative Investments, which hopes to up its operating funding to $3 billion.

Once established, the fund will invest in six to ten large infrastructure deals, each requiring more than $1 billion of equity.

Heading up the fund will be Juan Bejar and Felicity Gates who were formerly employed as head of infrastructure with Spain's Ferrovial and as head of a Deutsche Bank unit infrastructure unit RREEF, respectively.

Meanwhile, Colin Campbell, JG Duthie-Jackson and Michael Froman have transferred from other Citigroup divisions to become managing directors for the new fund.

News of the new venture follows the announcement this week that the Edward Lampert-owned hedge fund ESL Investments has built up an $800 million stake in Citigroup, leading to speculation that Mr Lampert may agitate for managerial change at the underperforming investment bank.