Major hedge-fund firms are expanding aggressively into private-markets investing, leveraging their risk-pricing capabilities and talent infrastructure to compete in areas traditionally dominated by buy-out and venture-capital players, according to a report by Bloomberg.

These multistrategy firms are exploring opportunities across private credit, direct co-investments, and growth equity, drawing on their deep balance sheets and structural flexibility to deploy capital where other investors may be constrained. Aside from the longer time horizon, they argue that the processes for pricing risk in private markets are similar to what they currently practice.

Among a series of interested firms, Steve Cohen's Point72 Asset Management is holding early stage discussions to raise a private-credit fund worth at least $1bn, with Todd Hirsch, formerly of Blackstone, brought in as head of private capital in early 2025. Millennium is raising $5bn for its first private markets fund, with a focus on corporate and asset backed debt, and real estate, but avoiding direct lending.