SkyBridge Capital, the New York-based alternative investment firm, has confirmed it is to acquire the fund of hedge funds, hedge fund seeding and hedge fund advisory businesses from Citi Alternative Investments, with investments under management and advisory totalling $4.2 billion. Terms of the transaction were not disclosed.

As reported previously by this publication, advanced talks began between the two companies earlier this year, as Citi looked to shed assets to help bolster its balance sheet.

The negotiated businesses are part of Citi Holdings, the segment which contains Citi’s non-core assets and businesses. This sale is consistent with Citi’s strategy of reducing non-core assets, tightly managing risks and optimizing the value of assets in Citi Holdings, the firm said.

Raymond Nolte, who has led the businesses at Citi Alternative Investments since 2005, will join SkyBridge as a managing partner and chief investment officer and will bring with him a team of more than 20 professionals.

The transaction will up SkyBridge’s assets under management and advisory to $5.6 billion.

“With the combined business, we can leverage the firm’s established relationships with hedge fund allocators globally to deliver a highly-diversified alternative product offering," Nolte said in a statement.