Billionaire investor Daniel Loeb’s hedge fund, Third Point, plans to acquire fund manager AS Birch Grove in a strategic move to enhance its credit investment capabilities, according to a report by Reuters.
The acquisition comes as investors increasingly seek diversified portfolio options.
Third Point, which manages approximately $12bn in assets, employs a variety of strategies, including equities, venture capital, and activist investments. The firm entered the credit market in 2020 with the launch of dedicated credit funds.
By acquiring Birch Grove, which oversees $8bn in assets, Third Point aims to “better serve its investors across all asset classes,” the report says citing a press release issued Friday. The firm also plans to develop new investment products as part of the expansion.
Third Point has achieved double-digit returns in 2023, a marked improvement from more modest gains of around 4% in 2022 and a 22% loss in 2021.
Founded in 2013 by Jonathan Berger and Andrew Fink, Birch Grove specialises in credit-focused strategies, including collateralised loan obligations (CLOs), senior loans, and high-yield bonds.
Following the deal’s expected closure in the first quarter of 2025, Birch Grove will operate as a subsidiary of Third Point. American Securities, which partnered in the creation of Birch Grove in 2021, will relinquish its ownership stake.
While financial terms were not disclosed, the leadership structure post-acquisition will see Jonathan Berger serve as Co-Head of Credit at Third Point alongside Ian Wallace, a Partner at the firm. Birch Grove’s existing funds will remain separately managed.
