Man Group, the world’s largest publicly listed hedge fund manager, is reportedly in advanced discussions to acquire New York-based credit investment firm Bardin Hill Investment Partners, as part of its strategic push into private credit, according to a report by Bloomberg.

The report cites unnamed people familiar with the matter as indicating that a deal could be finalised as soon as this month, though talks remain ongoing and could still fall through. Both Man Group and Bardin Hill declined to comment on the potential transaction.

The move comes as hedge fund managers and alternative asset firms increasingly pivot toward the $1.6tn private credit market, drawn by rising yields, retreating bank lending, and the opportunity for higher-margin strategies.

Founded in New York, Bardin Hill focuses on middle-market lending, special situations, and broadly syndicated credit, managing $3.3bn in assets as of late February. The firm would complement Man Group’s growing ambitions in the private credit space.

Man Group, which had $167bn in AUM as of mid-April, made its first major foray into the space last year with the $183m acquisition of Varagon Capital Partners. CEO Robyn Grew has previously described private credit as a “cracking opportunity,” but emphasised the importance of acquiring firms with the right scale and cultural alignment.