Hedge fund Millennium valued at $14bn in minority stake sale talks

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Millennium Management, one of the world’s largest hedge boxes, is holding talks about selling a minority stake to external investors with a value of $ 14 billion, as it presses plans to open their ownership for the first time.

People familiar with the discussions said that Millennium was working with Petershill Partners from Goldman Sachs to identify potential buyers for a share of 10-15 percent shares in the Millennium Management Company. This is the first time that an official evaluation of the hedge box has been submitted.

Petershill, run by Goldman, buys minority stakes in alternative investment companies and targets both customers and largest investors in the Millennium Fund with the deal.

The millennium deal will secure one of the best assessments for any hedge box manager, according to two people familiar with the situation.

Millennium and Petershill refused to comment.

The New York -based millennium, which has more than 75 billion dollars in management assets, is one of a selection of hedge giants that operate through asset classes.

The so -called multiple managers have more than 320 investment teams who invest in narrow risk, and compete with the likes of Ken Griffin Castle and Steve Cohen.

Discussions with external investors come at a time when the millennium is working on a plan to open the ownership of the administration company to senior executives for the first time by distributing shares to its main members.

The millennium also talks to Blackrock about a strategic partnership that can lead to the largest asset manager in the world that gets a small share of stocks.

In recent years, its founder in the seventeen Easy Engender, who has maintained the ownership of the only millennium of his 36 -year -old history, has taken several steps to give the institutional nature and prepare it for life without it.

Millennium has obtained its capital base by transferring the vast majority of investors to a long -term stock category, which increased the time it takes to leave their investments with the hedge fund from one to five years.

Englander has also built the Millennium Driving team through a series of upper obstacles from Goldman Sachs, exploring the diversification of business with new strategies, and changing its fee structure so that investors are now required to pay the minimum fees regardless of the performance of the fund.

Annual fees, in addition to expenditures, are now about 1 percent of assets or 20 percent of investment gains, which bankers described as closer to management fees.

Hedge boxes are usually estimated on the basis of management fees-about 1-2 percent of the total assets-the performance drawings they generate. Management fees are seen as more predictable revenues and are attributed to a higher evaluation by the market than sometimes volatile performance fees.

A consultant for private capitalist groups said that the hedge funds are multiple managers-even that of the Millennium, which was imprisoned for a few years-they usually get less complications on management fees from complications of the management of private stock companies. They usually have fewer performance fees.

And they said: “If you put everything together, there will be many multiple businesses than a firm private stock company.” “But investors can still be excited by the brand.”

The counselor said, “The private stock companies listed to the public are trading for young people in the mid -twenties of the twentieth century, complications of cash flow. The hedge box will be much less.”

Investors said that the pioneering fund in the millennium received 15.1 percent last year, and about 0.4 percent rose this year to May. An annual gains of about 14 percent have recorded since its inception.

Additional reports by Antoine Gara in New York