Pay at hedge fund Millennium became more enormous
If you’re a trader who wants to work for a hedge fund, Millennium has plenty going for it. The hedge fund is divided globally into independently run teams, each of which is rewarded proportionate to its own results. Whereas other large funds pay on the basis of ‘netting’ (gains minus losses) across strategies, Millennium’s pay structure is more granular – if your team’s strategy does well, you’ll be rewarded, even if all other teams at the fund make a loss.
What does this mean for salaries and bonuses at an individual level? Millennium doesn’t divulge pay globally, but the fund’s two UK-based entities, Millennium Capital Management Ltd. (the UK holding company, which includes all administrative and investment staff) and Millennium Capital Partners LLP (the partnership comprised predominantly of the investment staff) publish annual accounts, with pay figures included.
Both entities have just published accounts for 2022. They reveal that Millennium is still an intensely lucrative place to work and that it has been hiring heavily in London.
Last year, Millennium Capital Ltd. employed 765 people in London, of whom 425 were 'professionals' and 340 were 'administrators.' This was a 35% increase on the 566 people (237 professionals and 304 'admins') it employed in 2021, and a 79% increase on the 428 people it employed in 2020.
Those 765 people were paid a total of $824.5m in wages and salaries, or an average of £1.1m ($1.3m) per head, up from $1m per head in 2021.
This didn't, however, include the additional £224m available for distribution among Millennium's 14 'members', otherwise known as partners, of whom some are corporate entities.
Accounts for Millennium Capital Partners LLP for 2022 also split out how much Millennium paid 347 investment professionals specifically. Namely, they each received £1.3m in wages and salaries alone, up from the £1.2m average it paid 257 investment professionals in 2021.
Operating profit at Millennium Capital Management went from £248m in '21 to £391m last year.
Whichever way you look at it, Millennium therefore both pays exorbitantly and is expanding fast in London.
As we reported this week, Millennium is considering teaming up with Schonfeld in order that Schonfeld portfolio managers can manage some of its capital. Schonfeld may be even more generous: recently registered accounts for Schonfeld Strategic Advisors LLP suggest eight London members were paid a total of £49m in wages and salaries and shared an additional £9m in 'members remuneration' for last year.
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