In the next few weeks, it is likely that Citadel, which manages about $13 billion of investment capital, will make the decision to float on the New York Stock Exchange, The Times reports. An alternative would entail Citadel selling a minority stake privately to an institution or a consortium of financial institutions, possibly as a precursor to a full-blown initial public offering.
Citadels hedge funds are highly leveraged and are understood to control about $100 billion of investments in total, when borrowings are included.
The move comes as Kenneth Griffin, founder of Citadel, launches advanced preparations to float, or sell part of the company, as part of plans to turn the American hedge fund manager into a diversified Wall Street institution, like Goldman Sachs or Morgan Stanley.
Citadel is working with Lehman Brothers and Goldman Sachs on several alternative proposals.