Multi-strategy hedge fund major Millennium Management is raising $5bn for a new vehicle focused on private-market opportunities, marking a significant expansion beyond its traditional focus on liquid assets, according to a report by Bloomberg.

The report cites unnamed sources as revealing that the new vehicle, dubbed the Millennium Opportunities Fund, will target longer-duration investments including asset-backed and corporate debt, real estate, and other low-correlation strategies, but will steer clear of direct lending.

Millennium is seeking to raise $3bn from external investors, with the balance to come from the firm itself and founder Izzy Englander. The evergreen fund will launch in early 2026 and will feature a two-year commitment period, while allowing periodic redemptions. Investors will be able to fully exit over a five-year horizon.

The new initiative signals a strategic evolution for Millennium, one of the world’s largest and most risk-controlled hedge fund platforms, which manages around $79bn and delivered a 6% return through September, Bloomberg reported.

Oversight of the fund will sit with Millennium’s Office of the CIO — including Justin Gmelich, Scott Rofey, Paul Russo, and Jeff Verschleiser — maintaining the firm’s trademark multi-manager structure. The fund will charge a 20% performance fee, consistent with Millennium’s flagship hedge fund, and will pass on costs to investors.

The move reflects growing hedge fund interest in private assets, an industry now managing over $14tn globally, up 77% since 2020.