The truth about pay at Millennium Capital Management

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The truth about pay at Millennium Capital Management

If you’re a trader who wants to work for a hedge fund, Millennium Investment Management has something going for it. The hedge fund is divided globally into 200 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) have just published pay figures and headcount for the year ending 31 December 2018.

Predictably, Millennium Capital Partners pays the most. In 2018, the average allocation of profit to each of its 12 partners was £1.3m ($1.6m) (up from £1.1m the year before) and the highest paid partner received £6.5m (down from £7m the year before).

As well as the 12 partners, Millennium Capital Partners employed 127 “professional” investment staff in 2018, to whom it paid a total of £69m in wages and salaries, or an average of £543k ($660k) each.

When administrative staff are added in, average compensation falls. Millennium Capital Management’s 279 UK staff (142 “professionals” and 137 “administrators”) were paid an average of £92m in 2018, or an average of £330k ($401k) each.

Both Millennium’s UK entities increased turnover by around 19% last year to around £226m. However, costs at each registered entity increased almost proportionately, with the result that profits were largely stagnant.

The reports also underscored the preparations Millennium has made for the UK leaving the European Union. In 2018, Millennium set up a new French branch, as well as a new branch in Norway (although Norway is not in the EU).

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