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 fourth quarter. The strategy will be led by Kite Lake partner Damien Regnier and will combine liquid global credit investments with convertible arbitrage.Regnier joined Kite Lake in May from Tyrus Capital, where he was a partner and headed the firm's convertible bonds business.Kite Lake, which manages about $3.9bn, reportedly declined to comment.Founded in 2011 by Massi Khadjenouri and Jan Lernout, Kite Lake is co-managed by Jamie Sherman and runs strategies spanning merger arbitrage, equity special situations, credit and distressed debt.The firm's flagship fund gained 18% in 2025 and has not recorded a losing year since its inception. Its KL Special Opportunities Fund fell 0.67% in September, reducing its gain for the year to 6.26%, according to the investor note.
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 fourth quarter. The strategy will be led by Kite Lake partner Damien Regnier and will combine liquid global credit investments with convertible arbitrage.
Regnier joined Kite Lake in May from Tyrus Capital, where he was a partner and headed the firm's convertible bonds business.
Kite Lake, which manages about $3.9bn, reportedly declined to comment.
Founded in 2011 by Massi Khadjenouri and Jan Lernout, Kite Lake is co-managed by Jamie Sherman and runs strategies spanning merger arbitrage, equity special situations, credit and distressed debt.
The firm's flagship fund gained 18% in 2025 and has not recorded a losing year since its inception. Its KL Special Opportunities Fund fell 0.67% in September, reducing its gain for the year to 6.26%, according to the investor note.
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