The new firm, called Napier Park Global Capital, will offer hedge funds, bespoke client investment products, collateralized loan obligations and private investing for institutional and ultra high net worth clients.

It will be owned by its employees and is expected to have around $6.8 billion assets under management from the start, which is set for the first quarter of this year.

So far, regulators have given their approval and the investor and counterparty consent process is underway.

The firm has been appointed as the portfolio manager of a $415 million CLO fund due to close this quarter. Generally, Napier Park intends to keep its CLO platform and credit/loan strategies at the center of its investment offering after the separation from Citi has been completed.

“We are very pleased with the progress we have made as we prepare to officially launch Napier Park as an independent asset management firm in the coming months. The support of our investors has been overwhelmingly positive and we are grateful for their partnership,” said Jim O’Brien, co-chief executive of Citi Capital Advisors.

The Capital Advisors business manages approximately $18 billion in assets.