Kennedy Lewis Investment Management closed its newest opportunistic credit fund, Kennedy Lewis Capital Partners Master Fund III, at $4.1 billion.
The fund surpassed its original fundraising target of $3 billion, the alternative credit management firm said in a news release.
The firm's first fund, Kennedy Lewis Capital Partners Master Fund I, closed with over $500 million in 2018. Its second fund, Kennedy Lewis Capital Partners Master Fund II, raised $2.1 billion in 2021.
Fund III targets private investments in non-sponsored borrowers with qualities that the firm said makes them countercyclical to broader markets, according to the release.
Kennedy Lewis added that the design of Fund III stands to generate strong risk-adjusted returns in industry verticals, among which include life sciences, power, technology, media and telecommunications in addition to cyclical industries.
Investors include the Vermont Pension Investment Commission, which manages $6.26 billion in investments for the Vermont State Retirement Systems, and the City of Jacksonville Financial Investment and Advisory Committee, which oversees $2.32 billion in investments for the Jacksonville Police & Fire Pension Fund, according to public filings.
"We are pleased and humbled to see such strong interest in Fund III," David K. Chene, co-founder and co-managing partner at Kennedy Lewis, said in the release.
"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."
Kennedy Lewis had $14 billion in assets under management as of Nov. 7.