Hedge fund manager Kenneth Griffin has let go of $1.2-billion worth of his stake in Citadel Securities, opening a door for an initial public offering FT reported.
Griffin sold part of his 85% stake in Citadel Securities to venture capitalists Paradigm and Sequoia, which only has select investments in the financial sector. The deal values Citadel at $22 billion, with Griffin’s stake estimated at $18 billion.
Citadel Securities Chief Executive Peng Zhao said the proceeds from the deal will be used to aggressively expand internationally, and enter new markets and asset classes such as cryptocurrencies.
A source close to the matter said the investment paves the way for a future IPO, with the firm currently the biggest market maker in the US, accounting for some 37% of all retail trading.
Griffin was previously critical of cryptocurrencies but noted that virtues may change in a “world of competitive exchanges and competitive pricing.”