By Michael Flaherty
NEW YORK (Reuters) - Todd Thomson, the former CFO and head of wealth management at Citigroup (C.N: Quote, Profile, Research, Stock Buzz), told Reuters on Tuesday he may raise a private equity fund of $1 billion to $2 billion to invest in the financial services sector.
Thomson's new firm, Headwaters Capital LLC, currently shares office space in New York City's Rockefeller Plaza with Ripplewood Holdings, a well known private equity firm that is also expected to be raising a new fund.
Thomson launched Headwaters earlier this year, after an abrupt and controversial departure from Citigroup in January. He said the firm is in its very early phases, investing his own capital with only a handful of employees.
But Thomson said at the Reuters Finance Summit that he may go to outside investors next year to raise a $1 billion to $2 billion private equity fund focused on financial services.
"There might be some interesting things that come out of detritus of the mortgage meltdown," he said, referring to investment opportunities. Thomson thinks prices on mortgage-related assets are headed lower.
"What would be interesting is to buy, for the right price, some of the (mortgage) servicers," he said.
In addition to mortgage-related companies, Thomson said he would consider investments across the financial services sector.
"In raising money today, you need a real story," he said. The current status of the credit markets makes it tough to get financing for private equity deals, he said. Continued...
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