(Bloomberg) -- Steve Cohen is joining the stampede of capital flowing into closely held biotech companies.

The billionaire founder of Point72 Asset Management incorporated Point72 Biotech Private Investments last month, according to Delaware state records. The investment vehicle will initially invest on his behalf, with no plans to raise outside capital, according to a person familiar with the matter.

The level of investment in the sector was expected to slow after venture capital funding in U.S. biopharma companies hit a record in the first quarter, Bruce Booth, a partner at Atlas Venture, wrote in a blog post last month. Instead, amid the Covid-19 pandemic, VC funding of biotech set another record in the second quarter, exceeding $6.4 billion, according to data compiled by transaction tracker PitchBook.

A representative for Stamford, Connecticut-based Point72 declined to comment.

The hedge fund manager oversaw about $17.2 billion as of July 1, according to its website. The firm’s allocation to health-care companies jumped to 24% of its U.S. traded stocks during the second quarter, its largest holding in any one industry, according to regulatory data compiled by Bloomberg.

The biotech partnership is separate from Point72 Ventures, an early stage VC strategy funded by Cohen and other members of the firm, the person familiar with the matter said.

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