Ken Griffin’s fortune jumps by $ 5 billion in one day after Sequoia Capital’s investment, Paradigm

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The hedge fund mogul known for his role in the GameStop stock craze and the purchase of the US constitution has climbed seven places among the richest in the country.

Investment mogul Ken Griffin is richer by more than $ 5 billion after venture capital firms Sequoia and Paradigm invested $ 1.15 billion in market-making firm Citadel Securities, according to Forbes’ estimates. The deal, announced on Tuesday, values ​​Citadel Securities at $ 22 billion. Griffin sold approximately 5% of its stake in the company, Forbes learned, which means the billionaire walks away with over $ 1 billion in cash, before taxes.

The value of Griffin’s remaining stake in Citadel Securities also increased, thanks to the higher valuation of the company. Griffin’s 80% stake is now worth around $ 15.9 billion, Forbes estimates, up nearly $ 5 billion. (Forbes applies a discount to the participations of private companies.) In total, Forbes Griffin estimates at $ 26.5 billion, up from $ 21.3 billion before the deal. He is now the 26th richest person in America, leaping more than seven places thanks to the deal.

The new investment marks the first time Griffin has accepted an outside investment for his e-commerce company, which he founded in 2002 and which says it handles more than a quarter of all U.S. stock transactions. About 15% of the private company is owned by partners of Citadel Securities, which employs 1,200 people.

Citadel Securities grew amid the pandemic surge in retail investing, as day traders flocked to no-charge brokerage houses like Robinhood. Market maker, Citadel Securities remunerates brokerage firms to execute equity transactions made by investors; he earns money on the difference between what he pays for the stocks and what he sells them for. The company generated record sales of $ 6.7 billion in 2020 and, according to a company spokesperson, has seen an even better year in 2021.

Griffin, 53, started trading in 1987 from his Harvard dormitory, installing a satellite dish on the roof to get real-time stock quotes. He founded the hedge fund Citadel LLC in 1990, which today manages more than $ 39 billion in assets. He owns around 85% of Citadel LLC, as well as over $ 1 billion in artwork and personal real estate, including works by Jean-Michel Basquiat and a New York penthouse he bought. for $ 238 million in 2019 in what was then reported to be the most expensive home sale of all time.

Little known outside financial circles, Griffin was put in the spotlight last year during the Gamestop investment craze as Citadel Securities’ relationship with mobile trading platform Robinhood came under scrutiny. when Robinhood restricted the ability of investors to transact. In February 2021, Griffin testified before the United States House Financial Services Committee alongside Robinhood CEO Vlad Tenev and others involved in the Memes Stock episode. A subsequent report by the Securities and Exchange Commission debunked conspiracy theories about illegal activity between Citadel Securities and Robinhood.

In November, Griffin made headlines when he outbid a cryptocurrency investment group for a first edition of the U.S. Constitution, spending $ 43.2 million for the landmark document in a sale. at Sotheby’s auction. Griffin is also known as a GOP mega-donor. During the 2020 election cycle, he donated more than $ 67 million to Republican groups and candidates, according to a report from OpenSecrets.org. Griffin also made a donation to President Biden’s inauguration committee.

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