Kennedy Lewis Investment Management, the New York-based firm, announced that it has successfully closed its third distressed debt-focused fund, Kennedy Lewis Capital Partners Master Fund III, at $4.1 billion. This exceeded the firm's initial fundraising target of $3 billion.
The fund was launched and closed on the same day, today, with half of the fund already being deployed. The firm is actively exploring opportunities across various verticals, leveraging their experience in sectors such as media, communications, and life sciences.
The strategy of Fund III is to target scalable businesses in sectors including life sciences, power, media, and homebuilder finance. It primarily focuses on non-sponsored borrowers that are countercyclical or less correlated to broader markets, leveraging tactical opportunities.
Co-managing partner Darren L. Richman emphasized their commitment to global investors and their role in crafting unique capital solutions for borrowers addressing significant market needs such as power generation and housing undersupply in the U.S.
Co-founder David K. Chene also acknowledged strong investor interest in the fund. He noted that Fund III embraces disruption and complexity, offering a unique return stream compared to traditional credit offerings.
The third fund attracted a diverse global investor base including pensions, insurers, sovereign wealth funds from various regions such as the U.S., Europe, and Middle East. Among the notable investors are Vermont Pension Investment Commission and City of Jacksonville Financial Investment and Advisory Committee.
This marks a significant growth for Kennedy Lewis Investment Management since its inception. The firm previously closed its first fund with $500 million in 2018 and the second with $2.1 billion in 2021.
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