Citadel prospectus reveals $57bn in gains from largest funds

Citadel has offered a rare glimpse into the performance of its largest multi-strategy funds, revealing an impressive $57 billion in gains during a highly profitable period for the firm. According to a report by the Business Times, this marks the most lucrative stretch for any hedge fund business in history. As part of its $1 billion bond offering this week, Ken Griffin’s firm was required to provide a prospectus for potential investors. While the document does not offer a full overview of Citadel, it does disclose financial results for its three largest funds—Wellington, Kensington, and Kensington II—covering nearly four years from early 2021 through September 2024.

These funds started 2021 with $23.6 billion in assets and generated $56.8 billion in gains over the period. After accounting for management and performance fees of $7.5 billion and pass-through expenses of $17 billion—most of which went toward employee compensation—investors netted $30 billion. By early 2025, these three funds represented approximately 80% of Citadel’s $65 billion in assets under management. The Wellington fund, launched in 1990, delivered a 19.5% return from its inception through December. Since 2018, Citadel has distributed $18 billion voluntarily to investors.

As of the start of this year, 61% of assets in Citadel’s multi-strategy funds came from institutional investors, including sovereign wealth funds, pensions, and endowments. Citadel principals and employees—who pay the same fees and expenses as other investors—accounted for 18%, while family offices and funds of funds represented 12% and 9%, respectively.

Despite a slight decline in net income for the nine months ending September 30 compared to the prior year, Citadel reported positive net trading revenues across all its strategies. Strong performances in equities, natural gas, power in commodities, fundamental credit, and convertibles drove these results.