Millennium Management is preparing to raise at least $10bn for its flagship fund later this year, seeking to capitalise on continued investor demand for multistrategy hedge funds, according to Bloomberg.

As with the firm's previous fundraising in 2024, the new capital is expected to be raised through callable commitments, allowing investors to pledge capital that Millennium can draw down over time as required.

The New York-based firm, which manages approximately $89bn in assets, declined to comment. Investor appetite for multistrategy managers has remained strong as firms such as Millennium, Citadel, Point72 and D.E. Shaw continue to attract allocations on the back of relatively consistent returns. Some of the industry's largest platforms have also limited asset growth by returning capital or profits to investors.

Alongside its internal investment teams, Millennium is a significant allocator to external hedge fund managers and recently agreed an exclusive capital partnership with Bobby Jain's Jain Global.

The fundraising comes amid changes within Millennium's senior investment leadership. Co-chief investment officer Paul Russo is set to retire at the end of the year, following the firm's appointment of former Goldman Sachs executive Erdit Hoxha to its chief investment office earlier this year.

Millennium returned 2.4% in May, taking its year-to-date gain through the end of May to 6.1%.