Hedge fund D. E. Shaw raises $1.1 billion for two private market funds By Reuters

(Reuters) – Hedge fund D. E. Shaw Group said on Tuesday it had raised a total of $1.1 billion for two of its new funds focused on investing in private markets.

Its private credit-focused fund Diopter received $650 million and is aimed at helping banks manage risks, while its Voltaic fund with $450 million is for investing in post-seed or growth equity-stage firms.

The raise comes as stellar growth in private debt markets over the past decade looks set to temper as a looming recession and higher interest rates squeeze companies’ earnings and their ability to service borrowing costs.

The D. E. Shaw group raised its first private credit fund in 2008, and since 2012 it has raised, including Diopter, more than $3.5 billion focused on the asset class, the company said in a statement.