Citadel Investments, a big $12 billion hedge fund, is looking to raise funds through a bond sale.
The Chicago hedge fund could sell up to $500 million in bonds in an offering to be rated by FitchRatings. The bonds will be sold in an deal that is being managed by
It's unusual for hedge funds to raise money through the sale of bonds. Typically, hedge fund raise money by taking out loans from a Wall Street firm or a big commercial bank.
But hedge funds are beginning to look to the capital markets as way to raise financing.
Earlier this month, Fortress Investments, a $26 billion hedge fund and private equity outfit, became the first U.S. hedge fund to file for an IPO. Fortress is looking to raise $750 million in the initial public offering.