Citigroup has set up a new group to cater to the richest investors in the world

Citigroup has set up a new group within its investment bank to focus on some of the richest investors in the world.

The US bank has created a global-asset management group inside the banking business, according to a memo sent on Wednesday by Raymond J. McGuire, the global head of corporate and investment banking.

The new body will combine corporate and investment banking coverage of private-equity, sovereign-wealth, pension, and hedge funds and certain family offices. It will be co-led by Zubaid Ahmad and Brad Coleman, according to the memo.

"Asset Managers have grown into a sizeable client base comprising Alternative Asset Managers, Private Equity Funds, Hedge Funds, Sovereign Wealth Funds, Pension Funds and traditional Asset Managers, with an aggregate of over $70 trillion of assets under management and rising," the memo said.

"As significantly, these institutions continue to broaden the scope of their investment activities, across both asset classes and geographies, and are evolving at not only the transaction level but also the strategic level," it added.

Ahmad and Coleman will also review "client prioritization" with Citigroup's markets and securities-services businesses, and will work to fine-tune coverage teams and capital commitments to those clients.