Starting from 1 million USD! Goldman Sachs begins selling shares of the "multi-strategy giant" Millennium, with impressive performance of "only 1 year of losses since 1990"
Goldman Sachs rarely sells millennium equity to individual investors, with a minimum subscription of $1 million and a maximum of $20 million, allowing high-net-worth individuals the opportunity to invest in this hedge fund giant that was previously limited to institutional investors. This company, which manages over $78 billion in assets, has performed remarkably well, having only experienced a 3.5% annual loss once since its establishment in 1990, which was in 2008
One of the world's largest hedge funds, Millennium, is opening its doors to high-net-worth individual investors.
On August 15, according to a distribution document seen by Bloomberg, Goldman Sachs is offering Millennium shares to its clients with a minimum investment of $1 million and a maximum of $20 million. This move is part of Millennium's plan to sell 10% to 15% of the company's equity, which values the company at approximately $14 billion. Based on the upper limit of the sale proportion, this transaction is expected to raise $2 billion.
According to informed sources, Goldman Sachs' team is actively reaching out to potential investors, including high-net-worth clients and even employees of Millennium's main competitors.
This move reflects a change in the equity trading model of the hedge fund industry, which has traditionally been limited to institutional investors. For investors, this means an opportunity to share in the growth dividends of a high-performing hedge fund giant. For the market, if Millennium's move is successful, it could provide a model for other large hedge funds to sell minority stakes to high-net-worth individuals rather than just institutional giants through broader channels.
A "General Who Always Wins" with Outstanding Performance
For investors unfamiliar with this institution, Millennium Management is a true giant in the global hedge fund industry. Founded in 1989 by 76-year-old Israel “Izzy” Englander, the firm currently manages over $78 billion in assets and has more than 320 independent investment teams.
What undoubtedly attracts investors the most is its long-term and robust performance record. According to the document, since 1990, Millennium's hedge fund has only experienced one annual loss during the 2008 financial crisis, with a decline of 3.5% that year. Except for nine years, the return rate in all other years has reached 10% or more. Additionally, its client funds have a lock-up period of up to five years, significantly reducing the risk of sudden capital outflows.
Millennium is also well-known as one of the representatives of "multi-strategy giants." It does not invest directly but acts like a "fund of funds," allocating capital to over independent investment teams. Each team focuses on its respective area, covering diversified strategies such as equities, fixed income, commodities, quantitative, and event-driven. This structure allows it to capture opportunities across a wide range of markets while effectively diversifying risk.
Goldman Sachs' "Double Charging"
This investment opportunity is arranged by Goldman Sachs' Petershill division. The document shows that Petershill will place the raised funds into a special purpose vehicle (SPV), which will charge clients a 1% management fee and a 10% carry.
This means that individual investors participating through Goldman Sachs will need to pay an additional layer of fees compared to institutional clients who invest directly. For large institutions, they can purchase shares directly from Millennium without incurring this extra cost. The core of this structural design lies in exchanging higher fees for lower investment thresholds and the opportunity to participate in top-tier funds
