Citadel Investment Group may be selling its troubled investment bank, but it hasn't given up on banking entirely.
The $11 billion Chicago-based hedge fund has taken a big stake in boutique investment bank Evercore Partners, the firm founded by former Deputy Treasury Secretary Roger Altman that boats White House Chief of Staff William Daley among its alumni.
Citadel disclosed today that it had boosted its stake in Evercore roughly seven-fold and that it now owns about 5.2% of the bank. That makes the hedge fund Evercore's second-largest shareholder after Fidelity Investments.
Citadel is currently seeking a buyer for its three-year-old investment banking advisory business. Yesterday it made a series of deep cuts in its investment banking unit, Citadel Securities, including a large number of layoffs at its New York office and the elimination of its equity research operation.