Northern Trust Pays $100M For Citadel Administrator

May 16 2011 | 1:02pm ET

Northern Trust Corp. has finalized its deal to acquire Citadel Investment Group's hedge fund administration business.

The Chicago-based firm will pay $100 million for Omnium, Crain's Chicago Business reports. Omnium's roughly 200 employees will join Northern Trust, taking $70 billion in assets under administration with them. Northern Trust currently has about $100 billion in assets.

Northern Trust's acquisition of Omnium first emerged in March; the firm said the deal, whose terms were officially not disclosed, would close in the third quarter.

"In today's markets, asset managers and institutional investors demand high performance, greater transparency and outstanding technology from their administration," Northern Trust CEO Frederick Waddell said. "This acquisition brings together the best in hedge fund administration expertise, along with Northern Trust's robust global custody capabilities and our highly-respected client focus. The result is a unique opportunity to scale a world-class business."

Citadel has been distancing itself from its administration unit since 2009, when it renamed the former Citadel Solutions. The name change was reportedly the result of unhappy clients, both Citadel's and Citadel Solutions'. The former's apparently didn't want their hedge fund investments administered by the hedge fund itself, and the latter's balked at plastering Citadel's name all over their own fund documents


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...