Diameter Capital Partners LP, a New York-based alternative asset manager focused on the global credit markets, announced the final close of Diameter Dislocation Fund II (DDF II) at the hard cap with $2.2 billion of capital commitments. And DDF II received significant support from current Diameter clients and new institutional relationships with about 50% of commitments coming from first-time Diameter investors.
The closed-end drawdown fund is going to invest globally across sectors and focuses on dislocated performing credit, stressed and distressed investments emerging from either micro-cyclical dislocations or broader macro challenges. And the strategy utilizes Diameter’s dynamic approach with top-down portfolio management and bottom-up position construction.
Consistent with Diameter’s investment process, DDF II is going to benefit from Diameter’s combination of research and trading to capitalize quickly on dislocation opportunities. To date, Diameter has called 35% of DDF II’s committed capital.
DDF II’s predecessor vehicle Diameter Dislocation Fund I closed in 2021 with approximately $725 million in total commitments. And Diameter manages about $13 billion in assets and invests across the full spectrum of corporate credit, from new issue to distressed, via its hedge fund vehicle, drawdown dislocation funds, CLOs, CDOs, and forthcoming private credit platform.
KEY QUOTE:
“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 closing of the fund at the hard cap reflects our investors’ shared view that there is a robust pipeline of unique investment opportunities that we look forward to executing on for the benefit of our global clients.”
- Scott Goodwin and Jonathan Lewinsohn, Co-Founders and Managing Partners of Diameter Capital Partners
