Millennium’s $20bn fund draws over $30bn in pledges

Millennium Management attracted more than $30 billion of investor commitments for a planned $20 billion capital raise, exceeding its target. The firm will draw cash from investors only when it issues capital calls rather than require full subscriptions up front.

People familiar with the matter expect Millennium, which manages about $97 billion in assets, to finalize roughly $22 billion of commitments on Oct. 1. The firm has also discussed raising an additional roughly $3 billion for a credit strategy that would invest in less-liquid assets.

Under the capital-call structure, investors pledge capital and provide cash only when Millennium requests it. The firm plans to call about $2 billion in October, with the remaining committed capital potentially available to be drawn over the next four years.

The initiative is led by Millennium president Ajay Nagpal and follows the firm’s partnership with Bobby Jain’s multi-strategy investment business. Millennium’s platform includes more than 360 trading teams and arrangements with external managers who run portions of the firm’s capital.

The firm is exploring further arrangements with outside managers and aims to replace some external capital with its own money. A Millennium representative declined to comment.