Citadel Plans to Return $5 Billion in Profits to Investors - Article

Citadel plans to return approximately $5 billion in profits earned in 2025 to investors at the beginning of next year, according to a person familiar with the matter.

The firm’s flagship multistrategy fund, Wellington, has gained 9.3% for the year through last week, the person said, speaking on condition of anonymity due to the sensitivity of performance information.

The distribution does not represent the entirety of Citadel’s 2025 profits. Instead, it reflects a decision to constrain capital to better align with what the firm views as the opportunity set heading into the new year. Following the payout, Citadel is expected to begin 2026 with approximately $67 billion in assets under management, down from about $72 billion currently.

A Citadel spokesperson declined to comment.

Citadel does not distribute profits annually, but since 2017, including the expected 2025 distribution, the firm has returned roughly $32 billion in profits to investors.

According to LCH Investments, Citadel is the most profitable hedge fund of all time based on net gains since inception. Through 2024, the firm has generated $83 billion in net gains since its founding in 1990, a figure expected to exceed $88 billion when updated rankings are released in January.