Credit Asset Manager Diameter Capital Closes $2.2B Sophomore Dislocation Fund

Diameter Capital Partners LP, a New York-based alternative asset manager focused on the global credit markets, closed its Diameter Dislocation Fund II at a hard cap of $2.2 billion.

The closed-end drawdown fund will focus on dislocated performing credit, stressed and distressed investments emerging from either micro-cyclical dislocations or macro challenges, according to the firm. To date, Diameter has called 35% of DDF II’s committed capital.

“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,” said Scott Goodwin and Jonathan Lewinsohn, Co-Founders and Managing Partners of Diameter Capital Partners.

The fund’s predecessor closed in 2021 with approximately $725 million in total commitments. Diameter manages approximately $13 billion in assets and invests across the full spectrum of corporate credit, from new issue to distressed, through its hedge fund vehicle, drawdown dislocation funds, CLOs, CDOs, and forthcoming private credit platform.