D.E. Shaw Raises $1.3 Billion for Fund Targeting Risk Transfers

Hedge fund D.E. Shaw & Co. raised $1.3 billion in commitments for its latest private credit fund, which focuses on purchasing pools of risk from banks through strategies such as synthetic securitizations, according to a statement seen by Bloomberg News.

The new vehicle, named D.E. Shaw Diopter Fund II, is double the size of its predecessor fund, which raised $650 million in 2022.

Private credit shops are allocating an increasing amount of capital to invest in synthetic risk transfers, as banks look to reduce exposure to certain loans. Synthetic risk transfers often consist of purchasing so-called blind pools of risk, ...