Hedge funds have made significant strides into private credit recently, tapping into an existential question for an asset class struggling amid fears of fraud, defaults and looming maturity walls: what exactly is private credit?
Firms like Point72 Asset Management and King Street Capital are the most recent examples of hedge funds expanding to private credit. Earlier this week, 9fin broke the news that Point72 was exploring a dedicated ABF fund in addition to its flagship private credit fund as investor demand outpaced capacity constraints.
US-based hedge fund Millennium Management also raised eyebrows earlier this year when it announced it was carving out a dedicated private credit unit to house the firm’s $5bn debut private credit vehicle, Millennium Opportunities Fund, which targets less liquid corporate and asset-backed debt.
