Hedge Fund Diameter Raises $2.2 Billion for New Credit Fund

Investment firm Diameter Capital Partners has raised $2.2 billion for a new fund aimed at taking advantage of credit-market dislocations.

The firm run by Scott Goodwin and Jonathan Lewinsohn said that about half the money came from first-time investors and that fundraising was closed at its hard cap. It’s already put to work a third of the committed capital, according to a statement.

Dislocation funds look to drive returns by pouncing on beat-up assets of a company that has seen its prices slump after an unexpected macro event or because of challenges within the industry. The new fund, similar to ...