Hedge fund Citadel to move headquarters to Miami from Chicago (updated)

Citadel Income Fund

23/06/2022 17:59

(Adds details on reasons for move, background on other
investors having moved)
    By Svea Herbst-Bayliss
    BOSTON, June 23 (Reuters) - Citadel, the $51 billion hedge
fund founded by billionaire investor Ken Griffin, is moving its
global headquarters to Miami from Chicago, becoming the latest
investment firm to shift offices to Florida in the wake of the
pandemic.
    Griffin is the wealthiest resident in Illinois with an
estimated net worth of $25 billion. The decision to relocate the
hedge fund and Citadel Securities, the electronic trading firm,
was motivated by Florida's business-friendly climate and tax
advantages, and concerns about rising crime rates in Chicago,
people familiar with his thinking said.
    "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," Griffin wrote to
employees announcing the planned move in a note seen by Reuters.
"Miami is a vibrant, growing metropolis that embodies the
American Dream."
    The firm 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. Florida
also does not collect state income tax.
    Citadel is one of the world's most successful hedge funds
and has been headquartered in Chicago for more than three
decades. The firm employs 1,000 people at it headquarters, 10%
less than two years ago, a statistic that Citadel executives say
underscores how tough it is to recruit top talent to Illinois.
About 4,000 people work at the firm in 17 offices around the
world.
    Citadel executives have expressed concerns about crime in
Chicago, noting a Citadel employee was stabbed a block from the
office while walking to work, that someone tried to carjack
Griffin's vehicle, and that protests have occurred outside of
the Chicago headquarters.
    The firm's move will deal another blow to Chicago's business
community after Boeing  BA.N  recently said it would move its
headquarters to Arlington, Virginia and Caterpillar  CAT.N 
announced plans to relocate to Irving, Texas. And it will likely
put a dent in philanthropic giving after Griffin, who was born
in Florida, donated more than $600 million to local educational,
cultural, medical and civic organizations.
    At the start of the pandemic, Citadel established a
beachhead at the Four Seasons Palm Beach hotel to ensure fluid
trading as COVID-19 locked down many businesses.  
     

 (Reporting by Svea Herbst-Bayliss; Editing by Lisa Shumaker)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))