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Kite Lake to launch diversified credit fund in fourth quarter

The new strategy will target global liquid credit and convertible arbitrage, and Kite Lake said its flagship fund gained 18% in 2025.

Reported · Written up by our desk · Hedge Funds

Kite Lake Capital Management is preparing to launch a new hedge fund focused on global credit and convertible arbitrage, with the Diversified Credit Fund planned for the fourth quarter, according to a report by Bloomberg.

The strategy will be led by Kite Lake partner Damien Regnier, who joined the firm in May from Tyrus Capital, where he was a partner and headed the firm’s convertible bonds business. Kite Lake, founded in 2011 by Massi Khadjenouri and Jan Lernout, also runs strategies spanning merger arbitrage, equity special situations, credit and distressed debt.

Kite Lake’s flagship fund gained 18% in 2025 and has not recorded a losing year since inception, the investor note cited by Bloomberg said. The firm’s KL Special Opportunities Fund fell 0.67% in September, bringing its gain for the year to 6.26%, the note added.

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