Billionaire Ken Griffin Announces Citadel Securities Move from Chicago to Miami
Edited by: TJVNews.com
Citadel Securities, the $51 billion hedge fund and electronic trading firm founded by billionaire investor Ken Griffin are soon moving their headquarters from Chicago to Miami, according to a report in the Economic Times. This is an expansion move and the offices in Chicago may not be shut down completely, the report added.
The New York Post reported that the move marks the latest investment firm to shift offices to Florida in the wake of the pandemic. The Post report also indicated that Citadel’s move “follows in the footsteps of prominent hedge fund managers Carl Icahn and Paul Singer whose firms moved to Florida from New York as employees longed for better weather and access to outdoor activities, a huge draw during the pandemic.”
Announcing the decision to move to his employees, Griffin told them in a memo on Thursday: “I am excited to have recently moved to Miami with my family and look forward to rapidly expanding Citadel in a city so rich in diversity and abounding with energy. Miami is a vibrant, growing metropolis that embodies the American Dream.”
The Post reported that Griffin has a net worth of $25 billion and is the wealthiest resident in Illinois. People familiar with Griffin told the Post that the decision to relocate the hedge fund and Citadel Securities was motivated by Florida’s business-friendly climate and tax advantages, as well as concerns about rising crime rates in Chicago.
The Economic Times reported that Griffin has not been very happy with the Illinois government’s response lately regarding these issues. In May of this year, Griffin had warned that if no changes are brought about in the current situation, then Citadel would be gone from Chicago soon, according to the Economic Times report.
Having been headquartered in Chicago for more than 30 years, the Post reported that is one of the world’s most successful hedge funds. The firm employs 1,000 people at its headquarters, 10% less than two years ago, a statistic that Citadel executives say underscores how tough it is to recruit top talent to Illinois, the Post reported. About 4,000 people work at the firm in 17 offices around the world.
Other firms that have opted to depart from Chicago to other locations including aircraft manufacturer Boeing. The company recently said it was planning to move its headquarters to Arlington, Virginia, according to the Post report. In addition, Caterpillar announced its plans to relocate to Irving, Texas, the report added.
The Economic Times reported that while Citadel employees have made significant contributions to the state in terms of tax revenue, Griffin has also been very generous with donations of over $600 million to various charities, social causes and other organizations.
Citadel’s move to the Sunshine State will take time to materialize as the building of a new headquarters in Miami will take a few years, according to the report in the Economic Times. The report also indicated that the move will not interrupt the firm’s plan of expansion in New York City, which will happen in a matter of months now.