NEW YORK (Reuters) – Billionaire investor Daniel Loeb’s hedge fund Third Point said it will acquire fund manager AS Birch Grove LP to expand its credit investment offerings as clients seek to diversify their portfolios.
Third Point oversees roughly $12 billion in assets and pursues a variety of strategies, including stocks, venture capital and activist campaigns. It launched a dedicated credit fund offerings in 2020.
By acquiring Birch Grove, which has $8 billion in assets, the firm said in a press release on Friday that it expects to “better serve its investors across all asset classes,” and plans to develop new products.
Third Point has notched double-digit returns this year, according to an investor, following more tepid returns of roughly 4% last year and losses of 22% in 2022.
Birch Grove was founded in 2013 by Jonathan Berger and Andrew Fink, and pursues strategies including collateralized loan obligations, senior loans and high-yield bonds.
After the transaction is completed during the first quarter of 2025, Birch Grove will become a subsidiary of Third Point, the firm said. American Securities, which helped create AS Birch Grove in 2021, will no longer have an ownership stake.
No terms were disclosed.
Berger will become co-head of credit at Third Point alongside Ian Wallace, a partner at the firm, but their existing funds will be run separately.
(Reporting by Svea Herbst-Bayliss; Editing by Varun H K)