Millennium Management Reportedly Seeks Record $20 Billion Capital Raise

Hedge fund Millennium Management is in talks to raise about $20 billion in new capital, a significant increase from its initial target, a person familiar with the matter told Reuters on Wednesday. The fundraising effort comes as the hedge fund industry experiences a surge in investor interest amid strong market performance.

Capital Strategy

The capital raise is expected to be structured in two tranches, according to the source. This initiative is reportedly being led by the firm's president, Ajay Nagpal.

Separately, Millennium is pursuing deals to replace the external capital of its outside managers. This strategy mirrors a previously reported deal in which Jain Global, run by former Millennium co-CIO Bobby Jain, returned investor funds to manage money exclusively for Millennium. Millennium Management did not immediately respond to a request for comment from Reuters.

Favorable Industry Backdrop

The move comes at an opportune time for the hedge fund industry, which is reportedly poised for a strong year. A recent Goldman Sachs note seen by Reuters indicated that an AI-driven boom in the first half of the year has lifted performance across most investment strategies.

Key trends highlighted in the Goldman report include:

Ad

• Every major hedge fund strategy attracted fresh capital in the first half of the year, a first in five years.
• Multi-strategy funds posted their strongest inflow levels in five years.
• Quantitative, or computer-driven, funds also continued to attract significant new money.

Demand from allocators, the institutional investors who back hedge funds, has also surged this year, broadening the flow of capital into the sector.

Firm Performance and Background

Founded in 1989 by billionaire Israel Englander, Millennium is one of the world's largest multi-strategy hedge funds, managing more than $92 billion in assets with over 6,800 employees globally, according to its website. The firm generated a 10.5% return for investors in 2025, according to a previous Reuters report.

In November 2025, the firm sold a 15% stake to a group of its largest institutional investors, marking the first time Millennium had divested an ownership stake in its history.