Point72 Closes Its Hyperscale Fund With $600 Million Raised in Funding

By Adriaan Brits | Friday, November 26, 2021 | Finance, Tech, Business

Asset management titan Point72 announced the closing of its inaugural private equity fund Point72 Hyperscale, which has raised $600 million in funding.

Businesspeople discussing financial charts.

Leveraging AI to Help Companies Achieve Higher Growth

The fund will be focusing on acquiring companies and utilizing applied artificial intelligence (AI) to help those business organizations become leaders in their respective markets. 

“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,” said Steven A. Cohen, founder and chief executive of the investment company. 

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

Several months ago, the investment company launched its “Private Investments” business unit to bolster institutional private investing activities, including Point72 Ventures and Point72 Hyperscale. 

The newly-established business unit is expected to support the evolution of the fund’s private investing operations. Dan Gwak and Sri Chandrasekar, who lead the company’s investment activities in deep tech, will now take on senior leadership roles within the Private Investments unit. 

Gwak has been appointed as the new managing partner at Point72 Private Investments, while Chandrasekar is the managing partner of Point72 Ventures. The investment company said it will continue to create new best opportunities for innovative entrepreneurs and business founders. 

“Dan and Sri have a deep expertise for identifying smart founders with innovative ideas that have the potential to revolutionize industries. look forward to continuing to work with them as we evolve the business and explore new opportunities in the private markets,” said Cohen.

Point72 was founded in 2016 by Cohen, who has decades of experience in investing in private and public companies. Point72 today has 30 employees across eight offices in the US and Europe.

The investing company opened two new offices in Seattle and Miami recently after pouring more than $800 million in total into more than 85 early-stage companies across fintech, deep tech, and enterprise sectors.

Point72 introduced Hyperscale in 2019, a strategy that focuses on the use of AI technology to innovate established businesses and industries. The AI technology can help these companies to spur productivity and boost their operating margins. 

The Hyperscale team consists of data scientists, engineers, and product managers who collaborate with portfolio companies to help them take advantage of the new technology and make new hires to maintain growth and success. 

While AI takes care of automation tasks, employees can focus more on using their creativity and ingenuity to address more complex issues and improve services.

The investment company hopes that fresh funding will help it become the industry’s leading asset management firm by delivering excellent risk-adjusted returns. Point72 has also placed a high focus on meeting the highest ethical standards when it comes to deploying raised funding.

Summary

Point72 Asset Management announced that it raised $600 million in funding for its inaugural private equity fund. The fund will focus on buying established business organizations and then using AI technology to help them drive productivity and margins with the goal of turning them into market leaders.


About the Author

Headshot for author Adriaan Brits

As an analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in Advanced Analytics & Media.

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