Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Citadel Securities valued at $22 billion after Sequoia, Paradigm take stake

Stock MarketsJan 11, 2022 10:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Ken Griffin, Founder and CEO, Citadel, speaks during the Milken Institute's 22nd annual Global Conference in Beverly Hills, California, U.S., April 30, 2019. REUTERS/Mike Blake 2/2

(Reuters) - Citadel Securities said on Tuesday venture capital firm Sequoia Capital and crypto-focused investment company Paradigm had made a $1.15 billion minority investment in it, giving the market maker founded by billionaire Ken Griffin a valuation of nearly $22 billion.

The funding round was led by Sequoia. Alfred Lin, a partner at Sequoia, will join the board of Citadel Securities, the company said.

The two-decade old company provides trading services to asset managers, banks, broker-dealers and hedge funds. Its institutional business serves over 1,600 clients.

The Chicago-based company has benefited from a surge in trading activity, helped in part by retail investors flocking to popular mobile trading apps since the pandemic began.

Citadel Securities was subjected to a close scrutiny from U.S. lawmakers and regulators, after Robinhood Markets Inc (NASDAQ:HOOD) and several other brokers restricted trading in shares of GameStop Corp (NYSE:GME) in January last year.

The restrictions, which drew the ire of some retail investors, followed a stunning rally that sparked a "short squeeze", leading to billions of dollars in losses for Wall Street hedge funds.

Citadel, the $43 billion hedge fund, had made a $2 billion investment in Melvin Capital at the time, after the latter, which had been short on GameStop since 2014, suffered massive losses.

Citadel Securities has denied any involvement in the decision made by the brokers.

The company has a presence in over 50 countries, and plans to use the latest capital to expand globally.

(This story corrects to say hedge fund Citadel invested in Melvin Capital, not Citadel Securities, in paragraph 7.)

Citadel Securities valued at $22 billion after Sequoia, Paradigm take stake
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Pupi Pi
Pupi Pi Jan 12, 2022 4:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Last year valued 35M, now after Sequoia invested 1.15B, it is valued 22B. Hahahaha Kenny, 14B disappeared? Any shorts?
GFlen BC
GFlen BC Jan 12, 2022 6:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cital needs the funds. Big time
Jeff Bailey
JeffB 20 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Growing! Great valuation!
Mr Stanley
MStanley Jan 11, 2022 3:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so in short, Citadel bailout? nothing to see here
Jeff Bailey
JeffB 20 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No. They bailed out Melvin, made bank on that deal. More to come obviously. Lots to see here, but you need to take the blinders off. I told you they would win and to not average down in GME from +$350.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email