Citigroup's alternative investment arm has launched its first infrastructure fund and is contributing one sixth of the fund from the bank's own balance sheet.

Citigroup Alternative Investments has allocated $500m (€370m) to the fund, Citi Infrastructure Investors, and aims to raise a total of $3bn. It will invest in between six and 10 large deals, each requiring more than $1bn of equity, said a source close to the fund.