Former BlackRock Asia-Pacific credit chief Neeraj Seth is seeking to raise up to $700m for a new credit-focused hedge fund through his recently launched firm, 3R Investment Management, according to a report by Bloomberg.

The fund will reportedly allocate up to 80% of capital to a long-short strategy in corporate bonds and loans across Asia-Pacific and the Middle East, alongside event-driven opportunities and other private credit investments. Seth is targeting low to mid-teens annual returns, with fundraising planned over three years.

Backed by family offices in Singapore, London and the US, as well as capital from Seth and his advisory board, 3R is positioning itself to capitalise on a potential revival in Asian credit markets. Seth, who spent 16 years at BlackRock and previously headed its Asian credit business, believes easing central bank policies and reduced pressure from China’s property sector could attract renewed investor flows.