Point72 Asset Management, the multi-strategy hedge fund led by billionaire investor Steve Cohen, is set to launch its first venture capital fund open to external clients, with a sharp focus on the rapidly evolving defence technology sector, according to a report by Bloomberg

The report cites investor materials reviewed by Bloomberg as revealing that new vehicle, dubbed the Deterrence Fund, is targeting a $400m raise and will primarily make early-stage investments – seed and Series A rounds – across defence, space, energy, and security-related startups.

Cohen is backing the fund personally with a commitment of at least $100m, reinforcing his conviction in the sector. The fund is being raised through Point72 Ventures, the firm’s in-house VC arm originally created in 2016 to manage Cohen’s private tech investments. This marks the first time Point72 is opening a VC strategy to outside investors.

While Point72 has long been known for its public markets prowess – managing over $37.7bn in its flagship hedge fund –the firm has been steadily expanding into private markets, including private equity and, more recently, private credit.

The Deterrence Fund, which will write checks ranging from $1m to $30m. will charge a 2% management fee on committed capital during the investment period (and 2% on net invested capital thereafter), plus a 20% performance fee.