Steve Cohen’s Point72 rakes in $600m for AI-assisted private equity fund

Point72 Asset Management, the family office managing the wealth of Steven A. Cohen, has raised $600m for its first private equity fund.

The funds raised comprise client cash as well as money from Cohen, Bloomberg reported citing a person familiar with the development.

Dubbed Point72 Hyperscale, the fund is set up to acquire companies and modernise and enhance their efficiencies.

Cohen said: “The close of our first private equity fund with external investors marks an important milestone as our institutional private investing business enters a new phase of growth and maturity.

“Point72 has a unique opportunity to apply our investment model and deep expertise to capitalise on the vast opportunities presented by investing in promising private companies.”

Earlier this year, Point72 set up Point72 Private Investments as the new business unit for its evolving institutional private investing activities, which comprises its global venture capital strategy Point72 Ventures as well as Point72 Hyperscale.

The firm also appointed Dan Gwak and Sri Chandrasekar in senior leadership roles within the Point72 Private Investments business.

The duo, previously co-led Point72 Ventures’ investment activities in deep tech, are also managing directors of Point72 Hyperscale.

Cohen said: “Dan and Sri have a deep expertise for identifying smart founders with innovative ideas that have the potential to revolutionise industries.

“I look forward to continuing to work with them as we evolve the business and explore new opportunities in the private markets.”

Point72 Hyperscale will pick majority stakes in companies in fragmented industries with high turnover and low margins, Gwak told Bloomberg in an interview.

In 2018, a report by The Financial Times said that the Financial Conduct Authority (FCA) blocked Point72 from accepting outside investor money in Britain.

Previously, Cohen was restricted from managing third-party funds for two years after his US-based hedge fund SAC Capital pleaded guilty to insider trading in 2013.