FILE PHOTO: U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

By Anirban Sen and Ateev Bhandari

(Reuters) -Millennium Management has sold a 15% stake to a group that included some of its largest institutional investors, according to an internal email seen by Reuters, marking the first time the hedge fund has divested ownership in its nearly four-decade run.

The deal marks a notable diversion from the closely held ownership structures of hedge funds, where ownership is typically confined to the founding partners and senior staff.

"We are pleased to announce the successful completion of the sale of a minority, passive equity interest in Millennium's management company," the company said in the email to employees.

While the email did not mention any deal terms, the sale fetched $2 billion and valued the fund at $14 billion, a source familiar with the matter told Reuters.

The group now owns approximately 15% of the fund, the email shows. The equity investments were made through funds managed by Goldman Sachs' Petershill unit.

Petershill invests in minority stakes in hedge funds and private equity firms.

The Financial Times reported the development earlier on Monday.

Reuters had reported in June that Millennium was in talks to sell a minority stake at a $14 billion valuation.

Founded in 1989 by billionaire Israel Englander, Millennium manages more than $79 billion across a range of asset classes including equities, fixed income and commodities.

It had been exploring a stake sale for some time. BlackRock, the world's largest asset manager, began early-stage talks with Millennium about a strategic tie-up that could involve buying a minority stake, Reuters reported in November citing sources.

Millennium and Goldman declined Reuters requests for comment.

(Reporting by Ateev Bhandari and Arasu Kannagi Basil in Bengaluru and Anirban Sen in New York; additional reporting by Nell Mackenzie in London; Editing by Pooja Desai)