Davidson Kempner Capital Management announced it has reached a final close for Davidson Kempner Income Fund II, raising aggregate capital commitments to the firm’s global asset-backed private credit strategy, including related separate accounts, to more than $1.1 billion. The firm said the second vintage in the series exceeded its fundraising target.
DK Income Fund II is structured as a closed-end, asset-based lending private credit fund with a flexible, opportunistic mandate aimed at building a stable, income-producing portfolio across sectors and geographies. Davidson Kempner said the fund will invest across structured residential, corporate, specialty finance and hard asset-backed loans, with an emphasis on downside protection and collateral dynamics tied to long-term secular trends.
The firm positioned the new fund as a follow-on to its first vintage, DK Income Fund I, which it described as an approximately $750 million predecessor that had invested about $1.4 billion as of September 30, 2025.
Income Fund II is co-managed by Managing Partner and CIO Tony Yoseloff, Co-Deputy Managing Partner Patrick Dennis, and Partner Chris Krishanthan, who leads European and Asian corporates. Davidson Kempner said the team is supported by investment professionals across the U.S., Europe and Asia spanning structured products, corporate credit and real estate.
Davidson Kempner, which has been operating for more than 40 years, manages more than $37 billion in assets and employs around 500 people across eight offices globally.
KEY QUOTES:
“We believe that DK Income Fund II fills a niche demand for diversified private credit exposure and enables us to take advantage of the diverse, global opportunity set in the current market environment.” “In our view, the Fund’s structure and flexible mandate allows us to be highly selective, pursuing opportunities that focus on a stable return profile combined with significant upside potential for our investors.”
Tony Yoseloff, Managing Partner and Chief Investment Officer, Davidson Kempner
“Building on the success of our first Income Fund, we are pleased to announce the final close of DK Income Fund II, which could not have been accomplished without leveraging the knowledge, experiences and resources of our global team.” “We are now committed to using our strong, extensive sourcing platform to identify compelling investment opportunities in our core areas of focus.”
Patrick Dennis, Co-Deputy Managing Partner, Davidson Kempner
“The successful close of this Fund underscores the growing demand for tailored credit solutions amongst differentiated borrowers.” “We believe we are well positioned within this current environment to support different borrower needs through thoughtful sourcing, credit underwriting and structuring.”
Chris Krishanthan, Partner and Head of European and Asian Corporates, Davidson Kempner
