Forbes – Michael Carpenter, once a contender for the chief executive’s job at Citigroup, is quitting the company in May to start an alternative investments venture.
Carpenter, 58, has been head of Citigroup Alternative Investments since getting shoved aside as head of the company’s global corporate and investment bank in 2002. Then-named Salomon Smith Barney was beset with regulatory issues and engulfed in a scandal involving accusations that its star telecom analyst Jack Grubman had published favorable research on a company so the bank could win more investment banking business from it.
Charles O. Prince, Citigroup’s (nyse: C – news – people ), chief executive, its former top legal eagle, and the person who had replaced Carpenter as head of investment banking back then, said in a statement Thursday that he wished Carpenter continued success in his new venture. In a memorandum to employees, Prince said he was supportive of the new venture and that Citi hopes “to be able to make a meaningful investment” in it.
Alternative investments, including private equity and hedge funds, are a hot sector and Carpenter certainly isn’t the only Wall Street figure to make the leap. The timing of his departure is interesting given that Citigroup is said to be among the private equity investors lining up alongside hedge fund Cerberus to make a bid for General Motors Acceptance Corp. (nyse: GMA – news – people ), the financing arm of General Motors (nyse: GM – news – people ). Citigroup Alternative Investments has $40 billion under management.
