New York credit firm Diameter Capital Partners closed its latest dislocation strategy fund at its hard cap of $2.2 billion.
The closed-end drawdown fund, Diameter Dislocation Fund II, collected over half of its commitments from new investors. The global strategy is across sectors and spans dislocated performing credit, stressed and distressed investments emerging from either micro-cyclical dislocations or broader macro challenges.
Diameter announced that it has called 35% of the fund’s committed capital so far.
The closing of the fund at its hard cap reflects a robust pipeline of unique investment opportunities that Diameter team looks forward to executing on behalf of the firm’s global clients, said Scott Goodwin and Jonathan Lewinsohn, co-founders and managing partners of Diameter, which manages $13 billion in assets.
“We are grateful for the strong support DDF II has garnered from current Diameter clients during a time of heightened market volatility and are particularly pleased to welcome a significant number of new investors to our limited partner base,” the pair said in a statement.
Diameter’s initial dislocation fund closed in 2021 with $725 million in total commitments. The firm also invests across corporate credit (from new issuance to distressed) via its hedge fund vehicle, drawdown dislocation funds, CLOs, CDOs and has a forthcoming private credit platform.