Former Citigroup chief executive Vikram Pandit has teamed up with investment firm Atairos Group to launch a company that will buy significant stakes in mature financial services firms.
Pandit will serve as chairman and CEO of the new venture, dubbed Orogen, which will have board members from Atairos, which was itself only launched earlier this year with backing from Comcast. Terms have not been disclosed.
Pandit, who left Citi in 2012, has taken several punts on fintech startups looking to disrupt his old industry, investing in TransferWise, student lending outfit CommonBond and marketplace lending technology provider Orchard Platform.
However, Orogen will be looking to take more significant long-term stakes, sometimes controlling, in more mature firms with proven business models as Pandit sees a shift in the financial services industry caused by new technology, data-driven services and regulation.
Over time, Orogen argues, the FS landscape will evolve from one dominated by large, leveraged conglomerate banks and unregulated non-bank rivals to a broader and more decentralised network of vertical providers.
Says Pandit: "I look forward to working with Michael and his team to identify exciting opportunities in the financial services sector and drive long-term value creation in our underlying businesses."