At least four new hedge fund firms are on target to raise more than $1 billion by the end of this year, as fundraising returns to levels not seen since before the global pandemic, according to a report by Bloomberg.
At least four new hedge fund firms are on target to raise more than $1 billion by the end of this year, as fundraising returns to levels not seen since before the global pandemic, according to a report by Bloomberg.
The report cites unnamed sources with knowledge of the fundraising activities as confirming that the firms are set to bring in at least a combined $6.5 billion from investors and that next year could see even more billion dollar-plus launches.
Last year, just two hedge fund firms managed to attract more than $1 billion, collectively raising $4.5 billion, while the largest launch so far this year is Mala Gaonkar’s SurgoCap Partners, which debuted in January with $1.8 billion.
Two of this year’s largest offerings are headed by Citadel alumni, with Jonas Diedrich and Dave Sutton set to start trading $1.7 billion at their London-based Ilex Capital Partners in July, while Todd Barker, the former head of Citadel’s Surveyor Capital unit, is expected to have raised over $2 billion by the time Freestone Grove Partners starts trading later this year.
Former Tiger Global Management trader Colter Van Domelen’s Informatic Capital, which opened this month, is this year’s fourth-largest launch and is expected to have over $1 billion by the end of the year.
Among the managers planning launches in 2024 are former Millennium Management executive Bobby Jain, who is considering opening a multi-manager, multi-strategy fund in the second half of the year. If Jain, who officially leaves Millennium on 30 June, does bring a fund to market, the launch could rival that off ExodusPoint Capital which, led by another ex-Millennium exec Michael Gelband, raised $8 billion back in 2018.
