Moore Capital Management is spinning off its fixed-income hedge fund, which plans to grow as large as US$3 billion after a new fundraising effort.

James Caird Asset Management is set to launch in the second quarter.

The new London-based firm will take Moore Capital’s Credit fund and 30 employees, led by fund manager Tim Leslie, with it. London-based Moore will have a stake in the new company, with which it hopes to have a “symbiotic relationship,” it said.

At launch, the firm expects to manage US$2.5 billion, the Financial Times reports, though that figure could reach US$3 billion.

Moore told the FT that the decision to spin off the credit fund was the result of its size, making it sensible to have a dedicated risk management and operation system for it.