Citi targets private equity co-investments for wealthy clients
Citi Private Bank is keen to offer wealthy clients more co-investment opportunities in private equity funds targeting industries responding to climate change.
Edward Kerschner, chief investment strategist for Citi's global wealth management division, said private equity offered an attractive route to invest in companies developing technologies to tackle global warming.
Kerschner believes climate change and global water shortages, in particular, are two investment themes worth following.
Citi closed an Indian infrastructure fund this year, in which private clients were offered the opportunity to invest. "I think they like the idea that it's our money on the line alongside their own," said Kerschner.
The bank is looking to raise $5bn (€3.2bn) for a fund targeting airport and utility assets.
Kerschner has been promoting a thematic approach to investing for 20 years, working at PaineWebber and UBS before joining Citi.
He said investors usually have a three to five-year window to take advantage of themes before the market prices in the trend. He believes the climate change theme has been running for about a year.
Citi has identified 111 public companies it believes are well-position to benefit from trends surrounding climate change and 40 companies that should do well from growth in infastructure development.
"I wouldn't buy them all today. They are well-positioned, not necessarily well priced," added Kerschner.
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