Goldman Sachs is giving wealthy investors the chance to buy into Izzy Englander’s Millennium Management, one of the world’s largest hedge fund managers, with financial commitments of between $1m and $20m, according to a report by Bloomberg.
The report cites diocuments being circulated by the bank as showing that the offering covers a 10-15% equity stake in Millennium, which manages over $78bn, implying a firm valuation of around $14bn. Goldman’s Petershill unit is expected to take roughly half of the stake on offer, with the remainder aimed at large institutional investors, including sovereign-wealth funds.
The bank is approaching high-net-worth clients and even staff at rival hedge funds to participate., according to unnamed Bloomberg sources. Investors entering via Petershill will face a 1% management fee and 10% carry on the special-purpose vehicle, while direct institutional buyers avoid the extra fee layer.
Millennium has delivered remarkably consistent returns since 1990, with losses only in 2008, and most years exceeding 10%. The hedge fund now comprises over 320 investment teams and has started allocating capital to other funds.
