Citadel Limited Partnership

The stable outlook indicates S&P Global Ratings' view that CLP will generate strong adjusted EBITDA margins above 80% (net of expense reimbursements), leverage below 1.5x (as measured by debt to adjusted EBITDA), and interest coverage above 15.0x in the next 18-24 months. The stable outlook also reflects our expectation that CLP will maintain or modestly build its AUM and maintain its solid investment performance. We could lower the rating if earnings decline so that leverage increases to 2.0x or more on a sustained basis, if investment performance or profitability seriously deteriorates, or if Citadel experiences large net outflows beyond distributions in the ordinary course of business. While it's unlikely, we could raise the rating if CLP increases earnings from stable

...Citadel Limited Partnership (CLP) maintains solid investment returns. CLP demonstrated consistently strong returns in 2024, with its flagship Wellington fund returning about 15.1% for the year ended Dec. 31, 2024, relative to 15.3% in 2023. Overall, the company's Wellington fund has achieved an annualized return of 19.5% (net of fees and expenses) since its inception, helping to differentiate CLP as the management company of one of the top performing hedge funds globally. Additionally, CLP's flagship Wellington and Kensington funds represented approximately 80% of the firm's total capital as of Jan. 1, 2025, meaning CLP generates some management fee and performance fee income on additional capital beyond its flagship funds. We anticipate CLP will continue operating with leverage below 1.5x over the next two years. In January 2025, CLP raised $1.0 billion in senior unsecured debt to fund a distribution to partners. This raised its S&P Global Ratings' adjusted debt to EBITDA to 0.9x pro forma...

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