Millennium Management, the $75bn multi-manager hedge fund led by Izzy Englander, is in discussions to sell a 10-15% minority stake in its management company in a deal that would value the business at around $14bn, according to a report by the Financial Times.
The report cites unnamed sources familiar with the matter as revealing that Goldman Sachs’ Petershill Partners is helping Millennium identify strategic buyers, as the firm opens its ownership structure to external capital for the first time. Both institutional investors and some of the hedge fund’s largest LPs are being targeted with the potential sale set to place Millennium among the highest-valued hedge fund managers globally.
The move comes as Millennium, founded in 1989, continues efforts to institutionalise its operations and lay the groundwork for a post-Englander era. At over 320 investment pods, Millennium competes at scale with fellow multi-manager powerhouses like Citadel and Point72.
In tandem with the stake sale, Millennium is preparing to distribute equity internally to top-performing executives – a key step in building long-term leadership continuity. The firm is also in separate discussions with BlackRock, exploring a potential strategic partnership that may include a small equity stake by the world’s largest asset manager.
Over the past several years, Englander has taken a series of measures to lock in capital and enhance firm durability, including transitioning most client assets into a five-year share class, shifting fee structures to include minimum fees regardless of performance, and making senior hires from bulge bracket firms like Goldman Sachs.
Millennium’s current model charges an annual fee of around 1% of assets or 20% of profits, excluding expenses. While these fees are lower than those in private equity, Millennium’s scale and consistency – including a 15.1% gain in 2024 and an annualised return of 14% since inception – make it a highly attractive platform.
Despite the prestige, hedge funds like Millennium are generally valued at lower multiples than private equity managers, due to the variability in performance fees and less predictable revenue. Private equity firms often trade at mid-teens to low 20s multiples of cash flow, while hedge funds typically command lower valuations on their management fee base.
