Ken Griffin is said to be considering selling a $65 billion stake in Citadel

On By Pranco

  • Citadel founder Ken Griffin said Thursday he is “open” to selling a stake in his hedge fund.
  • Griffin had previously sold a minority stake in his market maker to venture capital funds Sequoia and Paradigm.
  • He said he would look for “a partner who feels like Sequoia.”

BlackRocks potential investment in Izzy Englander’s Millennium, Citadel founder Ken Griffin might think.

At the Economic Club of New York ThursdayGriffin complimented BlackRock founder Larry Fink for being a “legend in asset management” and said that if the partnership ultimately goes through, “it will be a very interesting one.” The early-stage talks between BlackRock and multi-strategy rival Millennium were reported by the Financial Times earlier this month.

When asked if he would consider such a move, the billionaire said he would be “open to selling a minority stake,” which is Citadel, the $65 billion hedge fund become the most profitable company has never done in the history of the sector.

“We take great pride in being a private partnership,” he said, adding he believes the structure has allowed the company to operate smoothly over the past 30 years.

Nearly every hedge fund is still owned by its founders and a select group of partners, even older industry giants like Citadel, even though Griffin may want to sell a stake at its peak. He said in a Bloomberg interview Tuesday that the extreme growth that has added billions in assets to his fund and those of his peers is unlikely to continue.

On Thursday in New York, he highlighted the benefits of selling a stake in his market maker Citadel Securities in 2022 to venture capital firms Sequoia and Paradigm. for more than $1 billion. The investment valued the company at $22 billion.

He said Sequoia in particular has brought “real insights” into how to run a fast-growing company, pointing to the company’s previous investments in Apple and Nvidia before the two companies were publicly traded.

Griffin said Sequoia has fostered Citadel Securities’ leadership in the boardroom, making them a better company.

As for who he would want as a minority stakeholder of Citadel, Griffin clearly has a type.

“We would look for a partner that feels like Sequoia,” he said.