Michael Carpenter, chairman and CEO of Citigroup Alternative Investments, announced today that he will resign effective May 1 to form an alternative investment firm. CAI will search for Mr. Carpenter's replacement and appointed Lew Karden, chief administrative officer, as interim head, Charles Prince, CEO of parent Citigroup, told employees in an internal memo.
Mr. Carpenter had an 11-year tenure at Citigroup and predecessor companies. "Mike has transformed CAI from a small operation into a uniquely positioned, leading alternative investment business that manages almost $40 billion across a broad array of investment strategies around the world in private equity, hedge funds, real estate, futures and credit structures," said Mr. Prince in his memo.
In his own memo to employees, Mr. Carpenter said the decision to leave was difficult, but "I have decided that if I am ever going to satisfy my longtime interest in building an entrepreneurial venture, now is the time." He told employees that his new money management business will likely be in the alternatives area, although he did not specify asset classes he is considering. In his statement, Mr. Prince said he told Mr. Carpenter that Citigroup supported the new venture and "hope(s) to be able to make a meaningful investment."
In a separate memo to employees, Mr. Kardin said he appointed Michael Froman to the new position of COO. Mr. Froman will also retain his current roles as CAI's managing director and head of strategy and business development, said Jon Diat, a spokesman.