Kennedy Lewis Investment Management Raises $4.1 Billion for its Third Opportunistic Credit Fund

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Kennedy Lewis Investment Management LLC

Nov 07, 2023, 10:00 ET

Kennedy Lewis' third opportunistic flagship fund is meaningfully oversubscribed and exceeded the original target of $3 Billion

Fund III pursues all-weather strategy designed to benefit from disruption across scalable industry verticals including life sciences, power, TMT, tactical opportunities, homebuilder finance and opportunistic cyclicals

NEW YORK, Nov. 7, 2023 /PRNewswire/ -- Kennedy Lewis Investment Management LLC ("Kennedy Lewis"), a leading alternative credit manager, announced that it has closed on $4.1 billion for Kennedy Lewis Capital Partners Master Fund III LP and its associated parallel and co-investment vehicles (together, "Fund III"). Investors in Fund III include a diverse range of pensions, insurers, sovereign wealth funds, foundations and endowments from the U.S., Europe and the Middle East.

Fund III employs Kennedy Lewis' all-weather opportunistic strategy which focuses primarily on private investments in non-sponsored borrowers with attributes that make them countercyclical or less correlated to broader markets. The strategy leverages the firm's deep sector expertise to pursue opportunities in industry verticals that are often underserved by traditional banks and lending platforms. These include life sciences, power, technology, media and telecommunications, as well as cyclical industries and tactical opportunities where Kennedy Lewis can capitalize on dislocations to deliver attractive risk-adjusted returns for investors and value-added, bespoke capital solutions to borrowers. In addition to its focus on private, first lien investments, Fund III is also able to invest in liquid instruments and across the capital structure.

Fund III includes exposure to Kennedy Lewis' homebuilder finance strategy which provides structured capital solutions to U.S. homebuilders to acquire land and complete horizontal development in a capital efficient manner that alleviates balance sheet demands and unlocks enterprise value.

"We are pleased and humbled to see such strong interest in Fund III," said David K. Chene, Kennedy Lewis Co-Founder and Co-Managing Partner. "Our go-anywhere approach, which leans into disruption and complexity, offers investors a differentiated return stream compared to more narrowly constructed credit offerings and we believe our track record across market cycles demonstrates its benefits for clients."

"We appreciate the support from our global investor base and look forward to continuing to work diligently to invest their capital and help them achieve their investment goals," said Darren L. Richman, Kennedy Lewis Co-Founder and Co-Managing Partner. "At the same time, we are proud of the value we bring to borrowers, many of whom address large market needs such as power generation and addressing the undersupply of housing in the U.S., through our partnership-oriented approach to crafting capital solutions tailored to their unique circumstances."

Fund III is approximately 50% deployed, and the firm is pursuing a range of compelling opportunities across its verticals.

About Kennedy Lewis
Kennedy Lewis is an alternative credit manager founded in 2017 by David K. Chene and Darren L. Richman with approximately $14 billion under management across private funds, a business development company, and collateralized loan obligations. The firm seeks to deliver attractive risk adjusted returns for clients by investing across the credit markets through its opportunistic credit, homebuilder finance, core lending and broadly syndicated loan strategies. For more information, please visit Kennedy Lewis' website at www.klimllc.com.

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SOURCE Kennedy Lewis Investment Management LLC