NEW YORK, Dec 22 (Reuters) - Billionaire investor Daniel

Loeb's hedge fund Third Point said it will acquire fund manager

AS Birch Grove LP to expand its credit investment offerings as

clients seek to diversify their portfolios.

Third Point oversees roughly $12 billion in assets and

pursues a variety of strategies, including stocks, venture

capital and activist campaigns. It launched a dedicated credit

fund offerings in 2020.

By acquiring Birch Grove, which has $8 billion in assets,

the firm said in a press release on Friday that it expects to

"better serve its investors across all asset classes," and plans

to develop new products.

Third Point has notched double-digit returns this year,

according to an investor, following more tepid returns of

roughly 4% last year and losses of 22% in 2022.

Birch Grove was founded in 2013 by Jonathan Berger and

Andrew Fink, and pursues strategies including collateralized

loan obligations, senior loans and high-yield bonds.

After the transaction is completed during the first quarter

of 2025, Birch Grove will become a subsidiary of Third Point,

the firm said. American Securities, which helped create AS Birch

Grove in 2021, will no longer have an ownership stake.

No terms were disclosed.

Berger will become co-head of credit at Third Point

alongside Ian Wallace, a partner at the firm, but their existing

funds will be run separately.