Alternative Investments: Citigroup Will Try to Mainstream “Hedge Fund Like” Investments

Citi Partners with YieldStreet on Mass Credit Investment Platform

Citigroup wants to bring hedge-fund-like credit investments to accredited investors. The firm is teaming up with online platform YieldStreet to bring $2 billion in assets to mass affluent investors, according to Crain’s New York Business.

“Retail investors could become a mainstream buying force in this alternative-credit space,” said Matt Zhang, Citigroup’s global co-head of structured credit and securitized product trading.

Zhang also heads the firm’s Spread Products Investment Technologies group or Sprint. That group will back the partnership.

The report indicates that Citi will bring these investments to the market over the next two years to the platform’s 300,000 investors. The partnership will provide Citigroup with a deeper understanding of the assets’ market potential.

Zhang said that the program “will give us the insight to know what type of product is not only attractive for typical institutional investors but also to an emerging retail space.”

Citigroup Takes on Private Credit

The idea of private credit for accredited investors on an investment platform might seem perplexing at first. After all, private credit can be difficult to understand. In addition, investors can face illiquidity challenges. YieldStreet’s CEO Milind Mehere said the platform will provide insight into every asset trading on the platform.

Related: Private Equity: Global Infrastructure Partners to Invest $3 Billion in Indonesia

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