Millennium Management has reportedly sold a minority stake representing around 15% to a group of investors in a deal valued at up to $2bn.
This move marks the first time that its founder Izzy Englander has sold equity in the company’s close to four-decade history, reported Financial Times.
It also represents a shift in the ownership structure of the New York-based hedge fund, which was previously entirely owned by Englander and related entities.
The transaction values Millennium at about $14bn.
Millennium notified employees of the sale through an email, describing it as a “minority, passive equity interest in Millennium’s management company”.
The sale process involved Petershill, a division of Goldman Sachs Group, which valued the company and helped identify buyers.
Millennium, in the note said: “Izzy and the management team believe that the actions we have taken further reinforce the durability of the firm, support the longevity of our business, and position Millennium for continued growth and success in the future.”
According to Bloomberg’s report, Petershill funds provided approximately half of the capital, with the remainder raised directly from Millennium’s existing clients.
The investor group includes several large institutions, high-net-worth individuals, and Millennium’s senior executives.
This stake sale forms part of Millennium’s succession planning strategy and aims to diversify ownership and ensure long-term stability for the firm.
Englander, who established Millennium in 1989, had considered selling a minority stake for more than a decade but had not previously completed such a deal.
The recent transaction comes as the firm has expanded significantly, now overseeing more than $79bn in assets with over 330 investment teams.
Millennium’s assets have doubled since mid-2019, supported by capital raising and an annualised return rate of about 14%, said the publication.
