CarVal Raises $3.6 Billion Credit Fund to Play Covid Recovery

CarVal Investors raised $3.6 billion for a new global fund focused on credit and distressed debt, closing the vehicle to new money after exceeding an initial goal of $3 billion.

The fund will invest in corporate debt, structured credit and hard assets, including sectors battered by the Covid-19 pandemic such as aviation and hospitality. Its early investments returned 20% in the year since its June 2020 launch, according to a person with knowledge of the results. CarVal, a global alternative investment manager based in Hopkins, Minnesota, manages about $10 billion.

The fund’s close comes at a tough time for distressed ...