Citigroup is raising cash for alternative funds

As lawmakers finish work on reform legislation that would change much of the industry, Citigroup is moving forward with a capital-raising plan for its alternative funds, sources said. "Citi must be comfortable enough that whatever happens, even in the extreme version, they'll be able to move ahead with these businesses," said Steven Kaplan, a professor at the University of Chicago Booth School of Business. "I don't think any of these bills envisioned not being able to manage someone else's money. It's the bank capital that's still an open question."

http://www.businessweek.com/news/2010-06-18/citigroup-looking-past-volcker-may-seek-3-billion-for-funds.html