New York-based BlackRock Inc. is reportedly raising as much as $3 billion for a hedge fund to invest in credit globally. BlackRock is the world's biggest money manager.

Bloomberg sources said that the firm began marketing BlackRock Credit Alpha Fund in October. The credit hedge fund has an initial target of $500 million and the potential to increase it. BlackRock Credit Alpha Fund seeks to capture valuation anomalies and mispricings.

BlackRock has expanded into alternative assets such as hedge funds, private equity, real estate and energy as investors seek to diversify beyond traditional stock and bond funds, the report said. Alternatives made up $103.4 billion of BlackRocks' $4.1 trillion assets under management as of September, based on its latest earnings statement.

BlackRock head for Americas credit James Keenan will be the chief investment officer of the new fund. The credit fund will be managed by former Centerbridge Partners managing director David Trucano, Bloomberg sources said.