NEW YORK–(BUSINESS WIRE)–Diameter Capital Partners LP, a New York-based alternative asset manager focused on the global credit markets, today announced the final close of Diameter Dislocation Fund II at the hard cap with $2.2 billion of capital commitments. DDF II received significant support from current Diameter clients and new institutional relationships, with approximately 50% of commitments coming from first-time Diameter investors.
The closed-end drawdown fund will invest globally across sectors and focus on dislocated performing credit, stressed and distressed investments emerging from either micro-cyclical dislocations or broader macro challenges. The strategy leverages Diameter’s dynamic approach with top-down portfolio management and bottom-up position construction. Consistent with Diameter’s investment process, DDF II will 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.
“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 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.”
DDF II’s predecessor vehicle, Diameter Dislocation Fund I, 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, via its hedge fund vehicle, drawdown dislocation funds, CLOs, CDOs, and forthcoming private credit platform.
About Diameter Capital Partners LP
Founded in 2017, Diameter Capital Partners LP (“Diameter”) is a New York-based alternative asset manager focused on the global credit markets. The firm combines fundamental research and trading to target attractive opportunities across the cycle. Diameter is registered with the U.S. Securities & Exchange Commission as an investment adviser. For more information, please contact ir@diametercap.com.
