Citigroup has elevated Michael Yannell to head of hedge funds for Investment Solutions, the latest step in the bank's effort to expand its wealth management capabilities. The promotion was announced in an internal memo from Daniel O'Donnell, head of alternatives and investment manager solutions, and confirmed by a company spokesperson.
Yannell, who returned to Citi in 2019 as director and head of hedge fund research, had been serving as interim head of the hedge fund business. In his new role, he will report directly to O'Donnell. According to the memo, O'Donnell credited Yannell with transforming the hedge fund platform, creating a mix of diversifying and directional offerings for Citi Wealth clients.
Before rejoining Citi, Yannell spent nearly five years as head of research for public and private credit at Gapstow Capital Partners. Earlier, he served as director of hedge fund research for credit and event-driven strategies at Citi Private Bank. O'Donnell noted that Yannell has more than 20 years of experience in alternative investments and a track record of delivering best-in-class strategies.
The appointment comes as alternative investments gain traction among financial advisors. A recent study by Brookfield Asset Management's Alts Institute, conducted by CoreData, found that the share of advisors reporting deep knowledge of alternatives nearly doubled to 32% from the firm's 2024 survey. The percentage of advisors identifying as "Power Users" rose to 40% globally, up from 26% in North America in 2024.
Citi has been actively building out its wealth platform. Earlier this year, it partnered with wealthtech firm Advyzon to create a unified account structure for clients across multiple regions. In its fiscal third-quarter results reported in April, the bank highlighted growth in its Citigold wealth management service, retail banking, and private bank.
The hedge fund push aligns with broader industry trends. As advisors pivot from private credit to venture capital and private equity, Citi aims to capture demand for alternative strategies. Meanwhile, direct indexing assets have surged to $1.2 trillion, outpacing traditional funds, signaling a shift toward customized portfolios.
Yannell's promotion also reflects Citi's broader talent strategy. The bank has been recruiting senior figures to bolster its wealth and alternative investment teams, competing with rivals like Blackstone, which recently hired PGIM's Michael Miller to lead its 401(k) expansion. With Yannell at the helm, Citi's hedge fund unit is positioned to expand its offerings for high-net-worth clients.
