Citigroup Inc. has announced that it intends to hire 500 employees over the next three years for a new wealth division. The new division will cater to junior employees at private equity offices, consultancies, and accounting firms.
Last year, Citigroup started its "Wealth at Work" unit, associating with a law-firm group that consists of 50,000 lawyers and 1,000 firms. The law-firm group focuses on offering wealth-management services to employees at the world's largest law firms. Citigroup intends to take this law-firm group model and apply it to junior employees at various private equity offices, consultancies, and accounting firms, according to AdvisorHub.
Many junior employees are burdened with student loan debt, which makes them unlikely candidates for wealth-management businesses that cater to high-net-worth clients. Citigroup plans to grow with junior employees with the hope that they will join the ranks of the ultra-wealthy.
Citigroup already has completed agreements with two asset managers and has begun working with their employees. The private bank also has signed its first deal for the unit portion, focusing on enterprise companies, like consulting and accounting firms. According to its CEO, Jane Fraser, Citigroup eventually will expand its strategy to other industries, creating a best-in-class experience for its clients and a high-returning business for its shareholders.
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