Citigroup (NYSE:C) Starting Hedge fund Consultation Service

Citigroup (NYSE:C) said today it is launching a hedge fund consulting service to it prime financial business.

Sandy Kaul, head of U.S. operations for the business advisory practice said, “A lot of the traditional clients that we have at Citi’s prime brokerage are facing new challenges around their organization, operational and technology maturity. There’s a whole new level of depth around the scrutiny that’s being put into the evaluation of allocating to a hedge fund.”

Prime brokers usually consult with smaller companies, which seems to point to a legitimate opportunity and potential profits from an underserved market.

Citigroup is targeting hedge funds with minimum assets of $3 billion.

Part of the service will be to help hedge funds to properly register and to help them transfer costs to their clients through a fee structure.