Is Millennium worth $14bn?
How to value a hedge fund management company
The FT reported this week a valuation of $14 billion for Millennium as it looks to sell a 10-15% equity stake. Is Izzy Englander calling the top - who knows better when to book profits than a pod shop trading legend?
In mid-2023 Ken Griffin said, “The stories of markets are always stories of cycles and strategies that come and go in terms of popularity….Clearly right now the multi-strategy managers are very much in vogue. When you’re most popular is probably when you’re reaching the top of the cycle.” But multi-strategy hedge funds kept winning over and over and over again. Better investment performance, strong flows, locked-in capital, new fees, and higher pass-through expenses for the pod shops.
The Millennium stake sale is likely more about succession planning and creating a sensible valuation from which to price share options for his senior management than Englander calling the top. Institutional Investor Magazine estimated that Englander made $4bn last year and he is worth more tha…
