Hedge fund Millennium Management is in talks to raise about $20 billion in new capital, much more than what it had initially set out to, a source familiar with the matter told Reuters on Wednesday.
The hedge fund will raise the cash in two tranches while separately seeking deals to replace the external capital of outside managers, according to the source. This effort is led by its president, Ajay Nagpal.
Nagpal's push mirrors a deal reported by Reuters earlier this year, in which hedge fund Jain Global returned investor cash to manage money exclusively for Millennium.
Jain Global is run by Bobby Jain, a former co-chief investment officer at Millennium.
Millennium Management did not immediately respond to a Reuters request for comment.
The talks come at a time when global hedge funds are poised for another blockbuster year, aiming to beat 2025 returns after an AI boom lifted first-half performance across most investment strategies, according to a Goldman Sachs note seen by Reuters.
Millennium gained 10.5% in 2025, according to a Reuters report earlier this year.
Every major hedge fund strategy brought in fresh capital during the first half – a first in five years. Quantitative, or computer-driven, funds continued to attract strong new money, while multi-strategy funds posted their strongest inflow levels in five years, according to Goldman.
Demand from allocators, or investors who back hedge funds, has also surged during this year, amid a broadening flow of capital into the industry.
Founded in 1989 by billionaire Israel Englander with $35 million in capital, the firm is one of the world's largest multi-strategy hedge funds. It manages more than $92 billion in assets and has over 6,800 employees globally, according to its website.
The hedge fund giant sold a 15% stake to a group that included some of its largest institutional investors in November 2025, marking the first time the hedge fund has divested ownership in its nearly four-decade run.
