Michael Kovac
BlackRock's potential investment into Izzy Englander's Millennium might have Citadel founder Ken Griffin thinking.
At the Economic Club of New York Thursday, Griffin complimented BlackRock founder Larry Fink for being a "legend in asset management" and said that if the tie-up eventually does go through, "it's a very interesting" one. The early-stage talks between BlackRock and multistrategy rival Millennium were reported by the Financial Times earlier this month.
Asked if he would consider such a move, the billionaire said he'd "be open to selling a minority stake," which Citadel, the $65 billion hedge fund that's become the most profitable firm in the industry's history, has never done.
"We take great pride in being a private partnership," he said, and believes the structure has helped the firm run smoothly for the more than 30 years it's been in existence.
Nearly every hedge fund is still owned by its founders and a select group of partners, even the older industry giants like Citadel, though Griffin may be looking to sell a stake at the peak. He said in a Bloomberg interview on Tuesday that the extreme growth that has added billions of assets to his fund and his peers' is not likely to continue.
In New York Thursday, he pointed out the benefits of selling a stake in his market maker Citadel Securities in 2022 to venture capital firms Sequoia and Paradigm for more than $1 billion. The investment valued the firm at $22 billion.
He said Sequoia in particular brought "real insights" into how to manage a rapidly growing company, noting the firm's past investments into Apple and Nvidia before the two companies were public.
Griffin said Sequoia has pushed Citadel Securities' leadership in the boardroom, making them a better company.
As for who he'd want as a minority stakeholder of Citadel, Griffin clearly has a type.
"We'd look for a partner that feels like Sequoia," he said.
