KBRA assigns ratings to flagship Citadel multi-strategy hedge funds
Kroll Bond Rating Agency (KBRA) has assigned BBB Issuer ratings to three multi-strategy hedge funds: Kensington Global Strategies Ltd (KGSF), Kensington Global Strategies Fund II (KGSF II), Ltd, and Citadel Wellington LLC (Wellington), and a BBB Senior Unsecured rating to USD500 million of notes issued by Citadel Finance.
The notes are guaranteed on a several, but not joint, basis by KGSF II, Wellington, and KGSF Offshore Holdings Ltd (wholly-owned subsidiary of KGSF). The guarantor funds are managed by Citadel Advisors, LLC, the investment management subsidiary of Citadel Group.
Citadel Group, headquartered in Chicago, is a global hedge fund with a 30-year track record and currently manages over USD35 billion in investment capital. The Funds managed by Citadel invest in a range of strategies including commodities, fixed income/global macro, credit, equities, and quantitative strategies. Wellington and the two Kensington funds dynamically invest across all of Citadel’s strategies, with a primary focus on liquid markets such as fundamental and systematic equities, as well as global macro rates and currencies.
The issuer ratings reflect the Citadel Group and the Funds’ long-term performance track record, their ability to attract and retain substantial investment capital, top-tier investment talent, moderate historical performance volatility, and strong institutional risk and liquidity management practices. The ratings assigned to the notes consider the guarantee from the funds.