Citadel LLC is a highly successful global firm that was created by billionaire Ken Griffin in 1990. The company is on the cusp of celebrating its 25th anniversary. Not all of the years have been been harmonious, in fact, just the opposite. In 2008, Citadel was on the brink. The company was a hairsbreadth from going belly up. The banking crisis had a choke hold on several financial institutions, and not all survived. It was only through the quick strategies of Griffin that the company is still here and thriving today. Today, Griffin has an estimated personal worth of $6.4 billion, and his company holds about $25 billion in investment portfolios.
Griffin has been in the financial industry for more than half his life. When he was in college, he probably had more knowledge about how the market worked than people who had been there 20 years. Griffin started a hedge fund company as a sophomore at Harvard. A tremendous feat for a mere college student. His investment strategies helped him make a boatload of money for himself and his clients.
Citadel is widely recognized for its performance and ability to consistently outperform others in the industry. The Chicago-based company now has 1400 employees and offices in New York, Asia and Europe. Although Citadel was left in a precarious situation in the wake of the banking crisis, it was able to survive. With more than half the wealth gone in less than a year, a number of tough, yet unpopular decisions had to be made to keep the company afloat.
Citadel found itself in a very strong position in 2009. The company launched a sister technology company that offers technology management to many firms and companies. Citadel Securities offers a variety of services to retail and institutional clients. Barron’s has consistently ranked the securities division the tops in the U.S.
Over the years, Citadel has made a number of lucrative mergers and acquisitions. In 2007, the company was able to acquire 20% of the online brokerage firm, E-Trade after supplying them with a $2.5 billion cash infusion. In a move that shocked many investment firms, Citadel called for the dismantling of “Too big to fail” banks. The decision would make their operations much more transparent.
The Citadel Group is active in philanthropy and has given generously to a number of organizations. They partner with various food banks and provide educational opportunities, food and shelter to needy people.