Jonathan Alcorn/Bloomberg NewsKenneth Griffin, chief of Citadel.

The Citadel Investment Group, the $11 billion Chicago-based hedge fund, is in talks to sell its investment bank just three years after its beginning, according to a person briefed on the matter.

The moves would bring to a close the ambitious, multimillion-dollar bet placed by the hedge fund, run by Kenneth C. Griffin, in the aftermath of the financial crisis, when banks looked weak. Citadel Securities will also be shutting down its equity research group, according to the person, who added that staff members would be laid off starting Thursday.

The investment banking unit will remain open as a buyer is sought.

Additional staff members would also be laid off, said the person, who spoke on condition of anonymity because the information was private. The rest of the securities unit, which includes a market-making business and sales and trading operation, will remain open.

Mr. Griffin’s vision was to create an investment banking unit to rival the titans of Wall Street – and indeed it drew bankers from top firms. But from the early stages, the effort was plagued by a stream of staff departures. Several top people left in what some described as a revolving door.

Citadel is shifting resources away from businesses that do not involve electronic trading, the person said.

Bloomberg News earlier reported Citadel’s plans.

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