Multi-strategy major Millennium Management has increased its capital backing for Engineers Gate, adding a further $300m to the platform earlier this year, according to a report by Bloomberg citing unnamed sources familiar with the matter.

The latest allocation lifts Millennium’s total commitment to Engineers Gate to approximately $3.6bn, making it one of the multi-strategy firm’s largest external trading relationships. Representatives for both firms reportedly declined to comment.

Large multi-manager hedge funds have increasingly turned to external managers as a capital-efficient way to deploy assets, avoiding the operational and recruitment costs associated with expanding internal teams. Goldman Sachs Group Inc. estimates that more than 70% of multi-manager platforms allocated capital externally in 2025, up from 54% in 2022.

New York-based Millennium, which oversees $86.3bn in assets across more than 330 trading teams, has been one of the most active firms in backing external managers. External allocations account for around a tenth of its trading teams, with many external groups managing capital exclusively for the firm.

In recent months, Millennium has also provided around $1.5bn in backing to Chaitanya Mehra, who is spinning out a diversified commodities platform, and allocated $2.3bn to London-based Fulcrum Asset Management for a strategy run by Fawaz Chaudhry. Separately, the firm has committed $850m to startup Armar Capital, founded by Martin Deurell and Gary Lee.

Founded in New York 12 years ago, Engineers Gate has evolved from a small group of equity-focused quantitative strategies into a diversified investment platform managing more than $5bn in assets, benefiting from growing demand among large multi-manager hedge funds for scalable external trading partnerships.