King Street Closes $2.3B Fund for Credit Market Dislocations

King Street Capital Management, a global investment firm, announced the final close of its second fund, Global Drawdown Fund II, with $2.3 billion of capital commitments, exceeding its $2 billion target.

The fund targets opportunities across distressed and stressed corporate debt, structured products, asset-backed credit and claims to identify less liquid, longer-duration opportunities arising from dislocations in the credit markets.

The fund received interest from a combination of new and existing global investors, with 80% re-upping their commitments from the firm’s predecessor vehicle, GDF I.

GDF I, which completed its investment period this summer, closed in July 2021 with $1.2 billion in total commitments and is fully invested.

“With the close of GDF II, we are thrilled to build upon King Street’s robust product offerings across multi-strategy credit, real estate, CLOs and opportunistic credit funds,” said Brian Higgins, co-founder and managing partner of King Street.

Based in New York, King Street is a global alternative investment firm founded in 1995 that manages more than $24 billion in assets across public and private markets.