Point72 Asset Management, the $41.5bn hedge fund led by billionaire Steve Cohen, is planning to expand into private credit, joining a growing number of hedge funds targeting longer-term, less liquid markets, according to a report by Bloomberg.

The Stamford, Connecticut-based firm has begun early discussions with investors to raise at least $1bn for a new private credit fund, according to sources familiar with the matter. The fund, expected to operate as an evergreen vehicle, will be managed by Todd Hirsch, who joined Point72 this year from Blackstone and currently oversees private capital within the flagship hedge fund. Cohen is anticipated to invest in the fund alongside external investors, in line with the firm’s approach for new products.

The move follows a trend among large multi-strategy hedge funds, including Millennium Management and Jain Global, which are increasingly deploying capital into private markets after building reputations in liquid markets such as equities, bonds, and currencies. Point72, known for its long-short equity strategies, has also developed centralised quant operations and expanded into macro trading and venture capital.

Millennium is reportedly targeting $5bn for private market investments, while Jain Global is launching a new fund led by former DE Shaw portfolio manager Syril Pathmanathan, focusing on bank capital relief trades alongside its flagship hedge fund.