Davidson Kempner Capital Management closed its sixth opportunistic/special situations fund at $3 billion.
Overseen by Executive Managing Member and Chief Investment Officer Tony Yoseloff and Managing Member of Global Credit Conor Bastable, the Davidson Kempner Opportunities Fund VI invests in less liquid, longer-duration situations arising from capital dislocations, motivated sellers and substantial asset or structural complexity.
The New York-based firm’s 113-person strong credit investing team across the U.S., Europe and Asia will also support the new fund with specialized capabilities in corporate investments, real estate and structured credit.
“The Fund’s close underscores the confidence that investors have in Davidson Kempner’s opportunistic strategies and the strength of our track record,” said Yoseloff. “Given the Fund’s focus on capital dislocations and special situations, we believe that the Fund is well-positioned to take advantage of the wealth of opportunities we expect to emerge amid the current environment of higher volatility and tightening liquidity.”
The $37 billion multi-strategy firm has built a track record across five previous vintages which have collectively invested over $10 billion since the strategy’s inception in 2011. The funds are diversified across geographies, industries and investment types, including corporates, real estate, structured products, infrastructure and hard assets, officials said.
“The close of this fund is a testament to the strength of our teams and the depth of our client relationships, particularly against the backdrop of a challenging fundraising environment,” said Eric Epstein, president and managing member. “Now our investment teams are focused on sourcing compelling public and private market investment opportunities across the globe.”
Last year was a tough one performance-wise for the legendary hedge fund firm, which over four decades of managing capital returned over $19 billion to investors through 2022, according to figures gathered by LCH Investments. The same ranking said that Davidson Kempner was one of a number of hedge fund firms that saw net losses last year with the storied multi-strategy shop down $400 million in 2022.