Dan Sundheim’s D1 Capital Partners is seeking to raise over $1bn for its first dedicated private equity fund, marking a strategic expansion by the $24.5bn hedge fund firm into the traditional private markets arena, according to a report by Bloomberg.
The new vehicle will represent D1’s first closed-end private equity structure, with a hard close and committed capital model – signalling a formal step beyond its existing hybrid investment approach. To date, D1 has primarily gained private market exposure through side pockets within its hedge fund, which houses both public and private equity positions.
The report cites unnamed people familiar with the plans as revealing that the fund is expected to reach a final close in 2026, as D1 continues to diversify its capital base and capture opportunities in late-stage growth and crossover investments. The firm declined to comment on fundraising details.
Founded in 2018 by former Viking Global Investors CIO Dan Sundheim, D1 has emerged as one of the leading crossover investment platforms, blending hedge fund flexibility with long-term private capital. Roughly 60% of the firm’s current assets are already allocated to private investments, including SpaceX, Collectors Holdings, Lineage Inc, and Ramp. D1 also held a stake in Instacart prior to its IPO.
After a challenging 30.5% drawdown in 2022, D1’s public equity book has rebounded sharply, up 24% year-to-date through September, buoyed by a recovery in growth and technology holdings. The rebound, alongside renewed liquidity in late-stage venture markets, has likely encouraged the timing of D1’s latest fundraising effort.
If successful, the launch will further blur the lines between hedge fund and private equity models, positioning D1 among peers such as Tiger Global, Coatue, and Viking in the evolving crossover investment landscape.
