Millennium Management Considers New Fund for Less Liquid Assets, Including Private Credit.

Millennium Management, a prominent hedge fund founded by Izzy Englander, is contemplating the launch of its first new fund in over three decades. The proposed fund would focus on less liquid assets, with a particular emphasis on private credit. This potential move comes as Millennium seeks to maintain its growth trajectory, having expanded into a $69.5 billion business since its inception 35 years ago.

The private credit market, which involves lending to riskier companies, has experienced significant growth, becoming a nearly $2 trillion asset class. Millennium sees opportunities in this market despite its rapid expansion. The firm currently operates with more than 330 investment teams under strict risk controls and manages a single flagship fund that has achieved a 9.5% gain in the first nine months of the year.

Millennium's potential new fund would mark a departure from its current focus on liquid markets and could involve either raising fresh capital or reallocating existing funds. The firm recently secured an additional $10 billion in assets for deployment when opportunities arise. This move would position Millennium to compete in the growing private credit space, following other hedge funds like Man Group that have already entered this market.

Report by Financial Times