Diameter Capital raises $4.5 billion for third dislocation fund

"Davis Polk advised Diameter Capital Partners LP on the final close of Diameter Dislocation Master Fund III (DDF III), which secured approximately $4.5 billion in commitments, exceeding a $4.25 billion hard cap. DDF III, more than double the size of the firm’s 2023 dislocation fund, will invest in stressed, distressed and special situations. Diameter is a New York-based manager with $25 billion in firmwide AUM."

Davis Polk advised Diameter Capital Partners LP on the fundraise and related matters for Diameter Dislocation Master Fund III LP, together with a related vehicle and their respective feeder funds (DDF III). DDF III recently held its final closing with approximately $4.5 billion of commitments, exceeding its original hard cap of $4.25 billion. The fund is more than twice the size of Diameter’s previous dislocation fund, which closed in 2023 with $2.2 billion of commitments. Diameter, founded in 2017 and based in New York, is an alternative asset manager focused on the global credit markets, with firmwide assets under management of $25 billion. DDF III will invest in market dislocations through stressed, distressed and special situations. Davis Polk represented Diameter Capital Partners LP and Diameter Dislocation Master Fund III LP (and related vehicle and feeder funds) with a team composed by: investment management team — partner Leor Landa; counsel Michael A. Stenbring; associates Imad Rizkallah, Alexandre (Xandre) Miranda and Jessica Carter; and tax team — partner Patrick E. Sigmon and associates William Liang and Hunter P. Shaw. All members of the Davis Polk team are based in the New York office.

Diameter Capital raises $4.5 billion for third dislocation fund

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