Perhaps the best place to look for your next investment banking job will be among hedge funds. Citadel Investment Group, Chicago’s biggest hedge fund, has taken the bold step of moving aggressively into investment banking, and turning the hedge fund into a more broad-based financial institution.
The firm has even landed its first investment banking file, a $3.5 billion debt-restructuring job for Fontainbleau Resorts LLC, according to an article in Pensions & Investments online. It has attracted many clients for its new institutional sales and trading division, as well.
Citadel has $13.5 billion in assets and has hired some 70 bankers and institutional traders, raiding firms such as Merrill Lynch & Co. and Citigroup. The company is also expanding into other financial services, such as its hedge fund administration business, where it handles trading platforms and other back-end functions for other firms.
Chief Operating Officer Gerald Beeson said the new business divisions could one day be as big or bigger than the hedge fund side of the business. One company source said Citadel already has engagements for underwritings, M&A assignments and restructuring deals. Eventually, they aim to offer the full range of investment banking services, including managing IPOs.