Diameter Capital Partners (“Diameter”), an alternative asset manager focused on global credit markets, announced the successful close of its third dislocation fund, Diameter Dislocation Fund III (the “Fund” or “DDF III”). The Fund and a related vehicle raised $4.5 billion in equity commitments, surpassing the initial hard cap of $4.25 billion. The Fund received strong support from a global base of sophisticated investors, with a third of commitments received from first time investors in Diameter’s Dislocation strategy.

DDF III, which invests in market dislocations through stressed, distressed, and special situations, builds upon Diameter’s track record of identifying and executing investments in industry micro-cycles that occur and create dispersion even in benign macro environments. The Fund seeks to capitalize on Diameter’s deep industry relationships and sector-specific research to source attractive opportunities to serve as a capital solutions provider and generate attractive risk-adjusted returns for investors.

Scott Goodwin and Jonathan Lewinsohn, Co-Founders and Managing Partners of Diameter, said, “Exceeding our initial hard cap for this fundraise demonstrates the trust both new and longstanding investors have in Diameter’s experienced team and disciplined approach. We have already invested meaningful capital to take advantage of the opportunities that exist across today’s dynamic global markets. Looking ahead, we will aim to continue to deploy capital with high-conviction, speed, certainty of execution, and an acute focus on delivering outsized results for our clients."

Diameter continues to scale its investment platform across public and private credit markets with firmwide AUM reaching $25bn. DDF III’s predecessor vehicle, Diameter Dislocation Fund II, closed in 2023 with approximately $2.2 billion of capital commitments and has been in harvest mode since April 2025.