New York based hedge fund Third Point will invest in private credit this year for the first time, as a complement to its existing portfolio.
Chief executive Daniel Loeb told investors that the firm will start making its first private credit investments within the next few months.
Read more: Moody’s predicts ongoing boom in European private credit
Third Point recently hired former Madison Capital chief executive Chris Taylor to build a stand-alone private credit business at the firm.
The new business will complement the firm’s existing investment strategies such as structured credit and corporate credit.
Loeb told investors that he will continue to pursue a strategy of “opportunistic credit investing, with increasing opportunities to act as a liquidity provider during times of heightened stress.”
Read more: Fidelity prepares to launch multi-credit ELTIF
The private credit market has been tipped for a boom this year, as banks continue to pull back their lending. This has led a number of investment managers including hedge fund managers to enter the space for the first time.
Third Point has more than $10bn (£7.95bn) in assets, and posted a 3.6 per cent gain last year. In 2022, it made a loss of 22 per cent.
Read more: Bain Capital Credit invested $2bn last year
