Millennium Management Seeks $20 Billion from Goldman Sachs Clients

Goldman Sachs is offering its clients the opportunity to invest in Millennium Management, one of the world's largest hedge fund companies, with a minimum investment threshold of 100 million dollars. According to documents released by Goldman Sachs, the firm is promoting Millennium Management's shares to its clients, with the minimum investment amount set at 100 million dollars and the maximum at 2000 million dollars.

Millennium Management, which manages over 780 billion dollars in assets, is currently seeking buyers for 10% to 15% of its shares, with an estimated enterprise value of 140 billion dollars. If calculated at the higher end of the range, this implies a need to raise 20 billion dollars, with approximately half of this amount coming from Goldman Sachs' Petershill division and the rest from other large institutional clients.

Sources familiar with the matter reveal that the Goldman Sachs team has been actively searching for potential investors, including high-net-worth individuals and even employees of Millennium Management's main competitors. The move by Goldman Sachs indicates an expansion of the potential buyer pool from institutional investors to high-net-worth individuals.

According to relevant documents, Petershill will invest the funds raised into a special purpose vehicle, which will charge clients a 1% management fee and a 10% performance fee. In contrast, institutions that purchase shares directly from Millennium Management will not incur these additional costs.

Millennium Management's consistent performance record may attract investors. Since 1990, its hedge fund has only incurred a loss in 2008, when it declined by 3.5%. In all other years, except for nine, the fund's return rate has been 10% or higher. Additionally, client funds are locked in for five years, mitigating the risk of sudden outflows.

The founder of Millennium Management, who is 76 years old, established the company in 1989 and has grown it into a formidable entity with over 320 investment teams. In recent years, Millennium Management has expanded rapidly, to the point where the company has begun delegating some of its funds to other hedge fund managers.

Historically, large hedge funds have sold shares, but Millennium Management will be the first major hedge fund to reach a broader range of buyers. This move signifies a shift in the industry, as hedge funds increasingly look to diversify their ownership and attract a wider range of investors. The consistent performance and long-term lock-in of client funds make Millennium Management an attractive investment opportunity for both institutional and high-net-worth individual investors.