Third Point has raised $400m (£295m) at the first close of its insurance solutions fund, the firm’s first dedicated private credit fund designed for insurance companies.
Third Point Insurance Solutions Fund I provides access to a variety of private credit opportunities across the US middle market and seeks to generate attractive returns for the firm’s insurance clients.
“The launch of our first dedicated insurance solutions vehicle offers a new type of investor access to Third Point’s private credit strategy,” said Third Point founder and chief executive Daniel S. Loeb.
Read more: Moody’s: Insurance companies increasing exposure to private credit
“Private credit is an essential piece of our expanding credit platform, which offers investors an increasingly broad set of solutions drawing on our three decades of investing in credit markets. The ISF intends to provide insurance companies with broad, differentiated private credit opportunities that offer consistent income and strong absolute returns.”
The fund adds to Third Point’s growing private credit platform, which expects to launch further products later in the year.
The $21bn alternative asset manager expanded its credit business earlier this year via the acquisition of AS Birch Grove, an $8bn credit asset manager.
“We are excited about this milestone as we look to provide the insurance market with access to a diversified private credit product that capitalizes on Third Point’s deep credit experience,” said Christopher Taylor, who came on board last year to lead Third Point’s private credit strategy.
“This is an important step in our long-term vision of building a diversified and scalable fund complex to support our private credit strategy. We are grateful to our anchor investors for their partnership and support of our business.”
Third Point entered the private credit space for the first time last year, to complement the hedge fund’s existing investment strategies such as structured credit and corporate credit.
Loeb told investors at the time that he will continue to pursue a strategy of “opportunistic credit investing, with increasing opportunities to act as a liquidity provider during times of heightened stress.”
