Millennium Management has sold a 15% stake to a group that included some of its largest institutional investors, according to an internal email, marking the first time the hedge fund has divested ownership in its nearly four-decade run.
“We are pleased to announce the successful completion of the sale of a minority, passive equity interest in Millennium’s management company,” the company said in the email to employees.
While the email did not mention any deal terms, the sale fetched $2bn and valued the fund at $14bn, a source familiar with the matter said.
The group now owns about 15% of the fund, according to the email. The equity investments were made through funds managed by Goldman Sachs’ Petershill Partners.
Petershill invests in minority stakes in hedge funds and private equity firms.
The Financial Times reported the development earlier on Monday.
Reuters reported in June that Millennium was in talks to sell a minority stake at a $14bn valuation.
Founded in 1989 by billionaire Israel Englander, Millennium manages more than $79bn across a range of asset classes including equities, fixed income and commodities.
It had been exploring a stake sale for some time. BlackRock, the world’s largest asset manager, began early-stage talks with Millennium about a strategic tie-up that could involve buying a minority stake, Reuters reported in November citing sources.
Reuters
