Coatue Management, the tech-focused hedge fund firm founded by Philippe Laffont, has set its sights on a $1bn capital raise for its flagship fund – the first in several years – as it looks to ramp up its investments in artificial intelligence, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that Coatue plans to gather most of this new capital from institutional investors, while a smaller portion will come from high-net-worth individuals through a partnership with Raymond James and Associates.
With nearly $50bn in assets under management, Coatue hasn’t partnered with a bank or brokerage for this type of fundraising since 2017.
Representatives for Coatue declined to comment on the plans, while Raymond James did not respond to requests for comment.
Laffont, has been a vocal advocate for AI’s potential, predicting that the technology will increase demand in sectors like energy and AI infrastructure.
Raymond James, which collaborates with more than 8,000 financial advisers, will add Coatue’s flagship fund to its hedge fund offerings for high-net-worth clients, according to Bloomberg’s sources.
The deal with Raymond James will provide Coatue with access to financial advisers who serve as key intermediaries for affluent clients. The firm has used similar arrangements in the past, partnering with Morgan Stanley in 2017 and previously raising funds through JPMorgan Securities. Clients of both firms will also have the option to invest in this new fundraising round.
Coatue’s flagship hedge fund, which oversees about $14.3 billion, has reportedly grown nearly 15% this year through October. The fund invests in both publicly traded companies and private start-ups, making it the firm’s largest investment vehicle.
