Citadel Securities valued at $22 billion after financial investment from Sequoia, Paradigm

Ken Griffin, Founder and CEO, Citadel

Mike Blake | Reuters

Citadel Securities stated on Tuesday equity capital company Sequoia Capital and crypto-focused investment firm Paradigm had actually made a $1.15 billion minority financial investment in it, offering the marketplace maker established by billionaire Ken Griffin an evaluation of almost $22 billion.

The financing round was led by Sequoia. Alfred Lin, a partner at Sequoia, will sign up with the board of Citadel Securities, the business stated.

The two-decade-old business offers trading services to property supervisors, banks, broker-dealers and hedge funds. Its institutional company serves over 1,600 customers.

The Chicago-based business has actually gained from a rise in trading activity, assisted in part by retail financiers gathering to popular mobile trading apps given that the pandemic started.

Citadel Securities underwent close examination from U.S. legislators and regulators, after Robinhood Markets and a number of other brokers limited trading in shares of GameStop in January in 2015.

The limitations, which drew the ire of some retail financiers, followed a sensational rally that stimulated a “short squeeze,” resulting in billions of dollars in losses for Wall Street hedge funds.

Citadel Securities had actually made a $2 billion financial investment in Melvin Capital at the time, after the hedge fund, which had actually been brief on GameStop given that 2014, suffered huge losses.

Citadel Securities has actually rejected any participation in the choice made by the brokers.

The business has an existence in over 50 nations, and prepares to utilize the most recent capital to broaden worldwide, according to the Wall Street Journal, which initially reported the offer.


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