BlackRock Discusses Minority Stake in Millennium Management

BlackRock is reportedly in preliminary discussions to acquire a minority stake in Millennium Management, a hedge fund managing approximately $70 billion, founded by Izzy Englander. While the talks are at an early stage and might not lead to a deal, they highlight BlackRock's ongoing strategy to expand its footprint in alternative assets, having recently completed significant acquisitions in infrastructure and private market data. Millennium Management, which has never sold a portion of its business to a third party, was previously in negotiations with Schonfeld Strategic Advisors that did not materialize. These potential moves could enhance BlackRock's revenue through higher-fee structures associated with alternative investments, which currently make up a small portion of its substantial asset base. As BlackRock seeks to become a comprehensive investment platform, its engagements with Millennium could signify a shift in hedge fund ownership dynamics. Both companies have declined to comment on the ongoing discussions.