Varde Partners closed its dislocation fund with more than $1.6 billion of commitments in five months of fundraising, exceeding a $1 billion target.
Varde Dislocation Fund had no hard cap, a spokeswoman said.
The fund will invest in opportunities caused by market dislocations and economic disruption related to the COVID-19 pandemic. It will pursue a broad universe of mispriced, stressed and distressed credit, a news release said.
Investors include the $3.3 billion San Antonio Fire & Police Pension Fund; $580 million University of Vermont and State Agricultural College, Burlington; and $202 million Lubbock (Texas) Fire Pension Fund.
"We believe the profound impact of COVID-19 has marked the start of a major, connected cycle," said George Hicks, co-founder and co-CEO, in the news release. "Having established a deep expertise in credit over the past 27 years, we bring to bear our experience investing through many credit cycles to guide us as the crisis unfolds."