DE Shaw, the $29bn US hedge fund, is considering launching a private equity fund into which it could inject some of its existing holdings, potentially including New York’s biggest toy shop, said investors consulted on the idea.

According to people who have discussed the fund with DE Shaw, in which Lehman Brothers bought a 20 per cent stake last month, a separate fund would be structured with fixed life and buy-out-style fees, rather than hedge fund charges.