Kite Lake to launch diversified credit fund led by former Tyrus partner
Kite Lake Capital Management is preparing to launch a new hedge fund focused on global credit and convertible arbitrage, adding to a growing pipeline of new products targeting continued investor demand for alternative strategies, according to a report by Bloomberg. The report cites an investor note as revealing that the London-based manager plans to launch its Diversified Credit Fund during the…
London-based Kite Lake Capital Management is set to introduce a new diversified credit fund, highlighting the firm's continuous expansion of alternative investment strategies, according to Bloomberg. The Diversified Credit Fund, to be launched in the fourth quarter, will be overseen by partner Damien Regnier, who transferred to Kite Lake from Tyrus Capital in May, previously leading the convertible bonds business.
Regnier's role will see him merge liquid global credit investments with convertible arbitrage. Kite Lake, with $3.9bn under management, declined to comment on the development. Established in 2011 by Massi Khadjenouri and Jan Lernout, the firm is co-managed by Jamie Sherman and manages portfolios across merger arbitrage, equity special situations, credit, and distressed debt.
The flagship fund achieved an 18% return in 2025, maintaining an uninterrupted streak of profitable years since inception. However, the KL Special Opportunities Fund experienced a 0.67% decline in September, reducing its annual gain to 6.26%.
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