For the first time in 36 years, “multi-strategy giant” Millennium sells 15% of its shares to investors, valuing the company at $14 billion.

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For the first time in its 36-year history, hedge fund giant Millennium Management—founded by billionaire Izzy Englander—has sold equity to external investors.

According to an email sent to employees on Monday, the New York-based firm has sold a 15% “minority, passive stake” in its management company to a group of investors, which includes some of its largest institutional clients.

Although Millennium did not disclose the identities of the investors or confirm the valuation in the email, a person familiar with the matter told the Financial Times that the deal valued the company at approximately $14 billion, meaning the 15% stake is worth about $2 billion.

The report noted that these equity investments were made through funds managed by the Petershill platform, which is run by Goldman Sachs and focuses on investing in alternative asset management companies.

First time in 36 years: Why sell equity now?

This transaction is widely seen as an important move by Millennium to lay the groundwork for the “post-Englander era.” Englander himself is now in his seventies, and preparing for a smooth transition and long-term development has become a top priority.

It was also reported that, in addition to introducing external investors, some of Millennium’s senior employees participated in the equity deal, further reinforcing the firm’s long-term commitment and internal stability.

Millennium stated in the email: “This transaction is the latest step in our development, aimed at further laying the foundation for Millennium’s future growth.” The company declined to comment further.

Cornerstone of Valuation: Multi-Strategy Model and Predictable Revenue

Millennium is one of the pioneers of the multi-strategy hedge fund structure, operating with hundreds of teams called “pods” across markets, rather than relying on a few star traders.

This strategy has enabled Millennium to accumulate $79 billion in assets under management, making it one of the handful of hedge fund giants that dominate the industry. The firm operates more than 330 trading teams, using a strict centralized risk control model to ensure no single team can lose too much capital.

Like other multi-strategy funds, Millennium focuses on delivering stable returns, making it highly popular among large institutional investors.

Millennium is also adjusting its business model to attract equity investors. According to reports, the firm has moved most fund investors into longer-term share classes, extending the capital withdrawal period to five years, similar to private equity vehicles, while typical hedge fund redemption periods range from one month to a year.

In terms of fee structure, Millennium passes most costs—including bonuses, technology, and data—directly to investors, while adjusting its fees so that investors must pay fees even in underperforming years. The annual fee, excluding costs, is about 1% of assets or 20% of investment returns.

These two measures together make revenue more predictable for equity investors than in the average hedge fund. The company had previously held talks with BlackRock regarding a share sale.

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