Business

Blackstone and Citadel reportedly had agreements




  • Wall Street giants Blackstone Group and Citadel reportedly had deals.
  • Blackstone has had discussions about taking a stake in the hedge fund itself as well as in its securities trading business, according to a report in The Wall Street Journal.
  • Although an agreement is not certain, it would represent a merger of two of the most prominent investment names.

Two of Wall Street's most legendary investment firms have reportedly discussed an agreement to combine the forces.

The Blackstone Group reportedly held talks to take up seats in Citadel, the Chicago-based hedge fund run by billionaire Ken Griffin, according to a report in The Wall Street Journal by Rachael Levy and Liz Hoffman.

Blackstone, aided by billionaire Steve Schwarzman, has the size of an investment in Citadel's flagship fund as well as its own marketing company, Citadel Securities, according to the report.

How hefty a price tag Citadel would fetch from Blackstone was not immediately clear ̵[ads1]1; Citadel execs reportedly value the hedge fund alone at $ 5 to $ 7 billion – and the journal reported that the discussions were "at times controversial and not sure to result in a deal . "

A Blackstone spokeswoman told WSJ they are not in discussions" at this time ", while Citadel spokeswoman Zia Ahmed said a" number of investors have expressed interest in our management company "over the three-decade run .

With $ 32 billion in assets under management, Citadel is one of the industry's largest and most successful hedge funds. That has helped Griffin raise nearly $ 13 billion in assets, according to Forbes.

Meanwhile, Blackstone is the world's largest private equity company with nearly $ 550 billion in management. Schwarzman's net worth is nearly $ 17 billion.

Read more at The Wall Street Journal.



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