Siris Capital, the name of the new group, is looking to raise $400 million, a source says. The fund will focus on healthcare, tech and telecom, the person says.
SAC Capital is the $12 billion hedge fund run by Steven Cohen. Cohen is reportedly helping support the debut vehicle, Siris Partners II LP, said Dow Jones, which first reported the spin out.
Frank Baker, Peter Berger and Jeffrey Hendren, who will lead Siris, previously worked at Ripplewood Holdings before joining SAC Capital in 2007, Bloomberg says.
Officials for SAC Capital declined comment.