Citadel, a US hedge fund manager, is set to take on custodian banks and asset administrators by offering its in-house administrative services to third parties from the start of 2007.

The offering memorandum for the firm's bond issuance this month said: "Citadel anticipates that a number of the back and middle office operational services currently performed by Citadel Group, such as reconciliations, settlements, corporate actions and valuations, will be performed by Citadel Solutions, which is expected to commence business on or about January 1, 2007.