Multi-strategy giant Millennium Management has increased its backing of credit specialist FourSixThree, adding a further $250m to the fund manager as it deepens its push into less-liquid and private market strategies, according to a report by Bloomberg.
The latest allocation follows an initial $1bn investment made last year by Izzy Englander’s firm into FourSixThree’s main hedge fund strategy. The report cites unnamed people familiar with the matter as highlighting that the new capital will be deployed through a separate sleeve focused on less-liquid credit opportunities, rather than the firm’s more traditional trading strategies.
The move is consistent with Millennium’s broader efforts to extend the duration of its investments and diversify how it manages its capital base. The firm is in the process of raising $5bn for a new vehicle targeting private market opportunities, including corporate and asset-backed credit, real estate and reinsurance, while steering clear of direct lending. That fund has yet to launch, and the latest FourSixThree allocation is being funded from Millennium’s existing flagship hedge fund.
Both Millennium and FourSixThree reportedly declined to comment.
The additional mandate underlines Millennium’s increasing use of external managers to help deploy its $86.3bn in assets. Around 10% of its roughly 330 trading pods are now run by outside teams, often through separately managed accounts that provide greater transparency and control over assets, a structure that has become increasingly attractive to large hedge fund platforms.
The allocation was led by Millennium’s newly established credit unit, which was recently separated from its broader fixed income group. Both investments into FourSixThree have been structured as separately managed accounts.
New York-based FourSixThree is led by chief investment officer Scott Balkan and launched trading in 2021 with backing from Leucadia Asset Management. Balkan previously headed credit at PointState Capital and earlier worked at Silver Point Capital.
The firm returned 18% in 2025, according to an investor letter seen by Bloomberg, and highlighted its avoidance of several troubled credits that hurt peers. It also generated gains by shorting bonds issued by luxury retailer Saks Global Enterprises, the letter said.
